MEDIAN PROPERTY MARKET VALUE FALLS

Article produced by our partner: Living in Portugal Consulting

The median value at which banks value properties with a view to granting loans fell to €1,110 in March. The effects of the pandemic are already being felt in the Portuguese property market.

Median value of Portugal's property market falls

When you apply for credit in Portugal. The banks assess your creditworthiness in order to give you a loan amount. As it happens, as a result of the current health crisis, this median value has just fallen for the first time in four years.

According to the National Statistics Institute (INE). The value of a square metre stood at €1,110 in March, interrupting a 48-month cycle of growth. However, INE's statics data differ from those published in previous months. They justify this by changes in the calculation methodology.

The median value of bank valuations in March was €1,110, a fall of 0.1 % compared with February. However, this fall needs to be put into perspective, as compared with the same period last year. It represents an increase of 10.3 %.

This downturn in the property market in Portugal is not reflected everywhere

This fall occurred mainly in the north of the country, more specifically in the northern and central regions. Where the median property value was 960 and 818 euros/m2 respectively, down by 0.2 % and 0.6 % compared with February.

The Alentejo region also saw this indicator fall by 1.7 1TP3Q, to 804 euros / m2.

During March, property values in Portugal's Lisbon and Algarve metropolitan areas were set at 1,483 euros/m2. They recorded increases of 0.2 % and 1.2 %, respectively, compared with February's figures.

However, the biggest rises were recorded in the autonomous regions of Madeira (+2.2 %) and the Azores (+1.3 %), at €1,138 and €908/m2 respectively.