The value of houses calculated by banks when granting loans for house purchase has been rising uninterruptedly for 11 months, having increased by ten euros in July to 1,417 euros per square meter, the highest record since January 2011, when the National Statistics Institute (INE) series began.
The average value of the bank appraisal is based on surveys of banks in the context of granting housing loans to families.
You have to go back to the beginning of the pandemic, in March 2020, to see the last drop in the bank valuation of houses, which in August last year registered a zero variation. Since then it has risen steadily, in a sign of the strong confidence of financial institutions in loans for house purchases, despite the new turbulent context of high inflation, war in Ukraine, tightening interest rates by the European Central Bank (ECB) and the threat of a recession.
With these values, a house with 100 square meters will be valued by the banks at 141,700 euros in national average terms (and by reference), it should be noted that there are differences in values from region to region and by type of house.
With these values, a house with 100 square meters will be valued by the banks at 141,700 euros in national average terms (and by reference), and it should be noted that there are differences in values from region to region and by type of house.
The value assigned by the banks has followed the trajectory of the appreciation of houses in transactions in recent years - generally, the banks' valuation is higher than the price at which the houses are actually sold. The rise in the cost of raw materials, particularly for building and renovating houses, may also help explain this trend.
By type of housing, the average bank valuation of houses in the country rose by 7 euros to 1,129 euros per square meter, and apartments increased by 12 euros to 1,575 euros per square meter.
Source: eco.sapo.pt