Banks' assessment of credit applications drops for the first time in 4 years

The median value at which banks value properties for credit purposes fell to 1,110 euros in March. The effects of the pandemic are already being felt ...

The median value of the real estate market in Portugal falls

When you apply for a credit in PortugalThe banks proceed to an evaluation of this one in order to be able to allot you an amount of loan, it happens that following health crisis that we cross, this median value has just undergone its first fall during the last four years.

According to the National Statistics Institute (INE), the value of a square metre rose to 1,110 euros in March, interrupting a 48-month growth cycle. INE's statics data differ from those published in previous months, however, and are justified by changes in calculation methodology.

The median value of bank appraisals in March was 1,110 euros, down 0.1 % on February, but this should be put into perspective, as compared with the same period last year, it represents an increase of 10.3 %.

This decline in the real estate market in Portugal is not reflected everywhere

This decline is mainly in the north of the country, more precisely in the northern and central regions, where the median property value was respectively 960 and 818 euros / m2, with a decrease of 0.2 % and 0.6 % compared to February. The Alentejo region also saw this indicator fall by 1.7 %, to 804 euros / m2.

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

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