The month of August saw a new record for high bank appraisals, with the Algarve registering a 40.7% increase compared to the previous year. But the latest figures from the National Institute of Statistics (INE) now show a decline.

For the first time in eight months, the median value of a bank appraisal for properties in Portugal dropped. The median value settled at €1536 per square metre, a €5 decrease compared to September.

The drop follows a seven-month consecutive increase from March to September, making October the first month to register a decrease since February, when the value dropped by €7 to €1478 per square meter.

Despite the month-on-month drop from September to October, there was an 8.2% year-on-year increase in the median value, which shows resilience in the property market.

The Algarve continues to lead in terms of higher values at €2130 per square metre, according to INE figures, although it saw the smallest increase compared to October last year at 6.1%. It was followed by the Lisbon Metropolitan Area at €2083 per square metre.

When it comes to numbers, bank appraisals increased to 26,900 in October, reflecting a 7.8% rise compared to September, equivalent to an additional 1935 appraisals. It also represents a 4.9% increase compared to October of the previous year.

Questions about local bank appraisals? Contact the Algarve property experts to ensure you get your dream home at the fairest price.

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