Bank appraisals for Portuguese homes rose 19.1% YoY to a record €2,081/m² in Dec 2025. The 2025 median was €1,949/m², led by Greater Lisbon and Setúbal, INE reports.
The cost of buying a home in Portugal continued to accelerate at the end of 2025, with bank appraisal values reaching a new high in December, the National Statistics Institute (INE) reported on Tuesday.
INE said the median value of bank appraisals for housing stood at €2,081 per square metre in December 2025 — up €21 from November and 19.1% higher than in December 2024 (18.4% in November). For the full year, the median appraisal value averaged €1,949/m², an increase of 17.3% compared with 2024.
Despite the surge in values, the number of appraisals considered fell. INE analysed roughly 34,500 bank appraisals in December, a decline of 4.9% month-on-month and 7.2% year-on-year, a drop the institute said could reflect growing household caution in the face of rising prices.
Regional gaps widen: Lisbon and Setúbal lead
The price climb is not uniform across the country. Greater Lisbon posted the strongest monthly rise (1.7%), while the Azores registered a marginal monthly dip (-0.1%). On a year-on-year basis, the Setúbal Peninsula recorded the steepest increase at 27.3%.
INE highlighted that appraisal values in Greater Lisbon, the Algarve and the Setúbal Peninsula were well above the national median — by 51.1%, 31.0% and 21.1% respectively. Conversely, Alto Tâmega e Barroso, Trás-os-Montes and Alto Alentejo showed the lowest relative values, each more than 50% below the country median.
Apartments rising faster than houses
The acceleration was sharper for apartments than for houses. In December, the median bank appraisal for apartments was €2,415/m² — 23.1% higher than a year earlier — with the highest apartment values in Greater Lisbon (€3,199/m²) and the Algarve (€2,758/m²). The Setúbal Peninsula again led in growth for apartments (29.2%).
For houses (villas), the median appraisal was €1,516/m² in December, up 14.7% year-on-year. Greater Lisbon and the Algarve recorded the top values for houses (€2,751/m² and €2,629/m² respectively).
Across 2025, INE reported the median value for apartments rose 21.0% to €2,239/m², while villas increased 11.5% to €1,435/m².
What this means
The INE data confirm a broad and persistent rise in Portugal’s property valuations, concentrated in Lisbon, Setúbal and the Algarve. The simultaneous drop in the number of appraisals suggests buyers and lenders may be reacting to higher prices and tighter affordability, a development to watch as policymakers and market participants assess housing access and financial stability in 2026.
