National banks' lending valuations for property increased in April to a new six year high with the Algarve being the most expensive region as the price per m2 is 25% higher than the country average.
The latest figures cover April, 2017, and show the average bank evaluation per m2 for housing in Portugal was €1,110, the highest value since July 2011, according to the National Statistics Institute.
By region, the Algarve continues to stand out, with the average price per m2 at €1,390, a figure that represents a small decrease of 0.3% compared to March but banks are valuing each m2 of Algarve property at 25% above the national average.
At April's values, buying a 100m2 house in the Algarve costs about €139,000 with the average countrywide value €28,000 cheaper.
The Central region is the cheapest with an average m2 price at only €912.
Although the overall property value in the country increased in April, some regions experienced reductions compared to March. In addition to the Algarve, the Lisbon Metropolitan Area and the Alentejo also recorded decreases in bank valuations.
Compared with the same month last year, all of Portugal's regions recorded increases of at least 4%. The Algarve once again stands out, with a year-on-year increase of 9.8%.
The bank evaluation is decisive for those who want a mortgage. It is on the basis of this bank valuation that the amount of credit is worked out.
As a rule, banks are financing up to 80% of their own valuations.
