Bank valuation of homes rises in February, but real estate agents say prices will remain the same

Home sales fell last year, but property valuations did not. The median bank valuation was 1560 euros per square meter in February, an increase of 5.5%, equivalent to 10 euros per square meter.

According to data from the National Statistics Institute (INE), the median bank appraisal value on housing has been rising every month since Decemberand increased in all regions last month.

The highest value was in Greater Lisbon (2,300 euros/m2) and the lowest in the Center (1,060 euros/m2).

On the other hand, Those who work in the real estate market say that house prices have stabilizedwith the variation in recent quarters being around 0.4%, because there are fewer buyers.

According to real estate agents, The rise in interest rates, and consequent difficulties in accessing bank credit, was the factor that most contributed to the drop in sales in the national market of around 17% last year.

Another problem is the lack of affordable homes for the lower middle class. Real estate companies are calling for urgent measures from the government, such as the transfer of local authority land for construction.

Construction can take between three and five years, so any solution will only have long-term effects on the real estate market.