Housing property evaluations by banks show a hike of 16.9%
Let's Break Down the Bank Assessment Hike
It looks like the bank assessment world saw some significant changes, according to data from the National Statistics Institute (INE). The cherry on top? A whopping 19.4% increase in the Autonomous Region of Madeira—no decreases reported there either!
Speaking of March, around 36,600 assessments took place, marking a 4.3% rise compared to the previous month, and an impressive 19.9% year-on-year surge.
Big surprises were in store for the Autonomous Region of Madeira, which showed a 3.7% boost compared to February and showed no signs of slowing down.
Five regions, including Greater Lisbon, Algarve, Madeira, Setúbal Peninsula, and Alentejo Litoral, boasted assessment values exceeding the national median, with Greater Lisbon leading the pack (47.1% above the median). Other regions, like Alto Tâmega e Barroso, Alto Alentejo, and Beira Baixa, ranked among the lowest.
When it comes to apartments, the median bank appraisal value stood at 2,071 euros/m2 in March, a 17.7% jump compared to March 2024. Madeira and the Algarve had the highest apartment values (2,750 euros/m2 and 2,426 euros/m2, respectively), while Alentejo served up the lowest figures (1,340 euros/m2).
And speaking of increases, 1-bedroom apartments saw a 48 euro rise, ending up at 2,600 euros/m2; 2-bedroom apartments climbed 31 euros, settling at 2,111 euros/m2, and 3-bedroom apartments followed suit with a 24 euro increase, reaching 1,825 euros/m2.
Now, for some house talk, the median value was 1,369 euros/m2 in March, which represents an uptick of 10.5% compared to the same month last year. Greater Lisbon and the Algarve continued to lead the way with the highest house figures (2,509 euros/m2 and 2,487 euros/m2, respectively), with the Center and Alentejo ranking at the bottom (1,020 euros/m2 and 1,117 euros/m2).
Comparing February to March, two-bedroom houses saw a 20 euro hike (1,342 euros/m2), three-bedroom houses experienced a 15 euro rise (1,350 euros/m2), and four-bedroom houses saw a 42 euro jump (1,438 euros/m2).
Still, the question begs: why the remarkable increase in Madeira? While the data doesn't offer a definitive answer, it could be due to the region's unique economic conditions stemming from its geographical isolation and status as an Outermost Region of the EU, leading to distinct financial trends. Factors such as tourism, local incentives, or specific economic policies could be contributing to this rise. For a more precise explanation, you'd need additional reports from the INE or local economic analyses.
In light of the significant increase observed in various regions, there's a growing interest in real-estate investing, particularly in the Algarve and Madeira, where the median apartment and house values are notably higher than the national median. Finance experts are recommending closer scrutiny of the unique economic conditions in these regions, such as their geographical isolation and Outermost Region status of Madeira, as potential factors driving the remarkable real-estate growth.
