Portugal’s bank property valuations have reached a new high. In May 2026, the national median stood at €2,208 per m², according to the Instituto Nacional de Estatística (INE).
For anyone applying for a mortgage in Portugal, this figure carries weight. The bank valuation directly influences how much a lender is prepared to finance, so shifts here can affect borrowing capacity.
Portugal's property prices in May 2026
The latest INE data shows a monthly rise of €34 per m² compared to April and an annual increase of 17.1%, slightly higher than the previous month’s rate.
Apartments in Portugal: stronger annual growth
Apartments are currently outpacing houses in annual growth. The median valuation reached €2,580 per m² in May, up 19.7% on the same month last year.
Greater Lisbon remains the most expensive region for flats, at €3,378 per m², followed by the Algarve at €2,945 per m². At the other end of the scale, the Alentejo and Centre recorded notably lower medians of €1,584 and €1,686, respectively.
- The sharpest annual increase was seen in Oeste e Vale do Tejo, where valuations climbed 26.3%.
- Most mortgage-backed apartment valuations relate to T1, T2 and T3 properties, which together accounted for 92.2% of cases.
- In monthly terms, T1 flats saw the largest jump, reaching €3,279 per m², while T2 and T3 units rose to €2,641 and €2,229 respectively.
Houses in Portugal: more moderate increases
Houses, or moradias, recorded a median valuation of €1,581 per m², reflecting annual growth of 13.4%.
Greater Lisbon again led on price at €2,874 per m², with the Algarve close behind at €2,786. The strongest year-on-year growth was recorded in both the Azores and Oeste e Vale do Tejo, each posting an 18.6% increase.
- T2, T3 and T4 houses made up 88.3% of valuations.
- Over the month, T2 homes rose to €1,576 per m², T3 properties to €1,531, and T4 houses to €1,672.
The widening regional divide
The gap between coastal hotspots and inland regions remains pronounced.
- Greater Lisbon sits 50.4% above the national median
- The Algarve and the Setúbal Peninsula stand 31.6% and 23.3% higher, respectively
- Interior areas stretching from Beira Baixa to Trás-os-Montes remain more than 50% below the national benchmark
What this means for foreigners seeking a mortgage in Portugal
Because banks base lending decisions on these official valuations, rising medians can influence how much financing is available when getting a mortgage relative to a property’s agreed purchase price.
The May 2026 figures confirm two trends: sustained national growth and a persistent divide between prime coastal regions and the interior. Apartments are seeing stronger annual momentum than houses, and the volume of valuations continues to edge up.
All data is drawn from the May 2026 release by the Instituto Nacional de Estatística (INE).
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