Portugal's Bank Property Valuations Hit a New High: What It Means for Buyers in Lisbon and Cascais

What happened?

Portugal's National Statistics Institute (INE) released its latest bank property valuation figures on 27 October 2026.

The national median valuation reached €2,278 per square metre in September, an increase of 14.2% compared with September 2025.

That was also €24 per square metre higher than in August, representing a monthly increase of 1.1%.

Although the annual rate of growth eased slightly from 14.7% in August, the median valuation continued to rise.

The figures are based on 32,597 bank valuations associated with housing credit applications, rather than completed property sales.

How do Lisbon, Cascais and the Setúbal Peninsula compare?

Greater Lisbon remains Portugal's most expensive region for bank property valuations, with a regional median of €3,452 per square metre.

Lisbon and Cascais both stand substantially above the national median. Across the river, the Setúbal Peninsula recorded a lower median valuation, but a faster rate of annual growth.

A note on comparisons: These are median bank valuations, not completed sale prices or asking prices. The figures cover different geographic areas and mixes of properties, so they should not be interpreted as valuations of equivalent homes.

One particularly interesting figure is the 18.4% annual increase in bank valuations across the Setúbal Peninsula, the highest recorded among Portugal's regions in September 2026. Even with this rise, I believe the area still offers considerable value and potential for further price growth, particularly given its proximity and accessibility to Lisbon, the growing number of international schools and, of course, its excellent beaches.

That compares with annual growth of 15.3% in Greater Lisbon and 14.2% nationally.

Apartments and houses: a different picture

The latest data also shows a significant difference between apartments and houses.

Nationally, apartment valuations reached €2,662 per square metre, an increase of 15.4% over the year. Houses recorded a lower median of €1,621 per square metre, up 11.1%.

These differences reflect the range of properties being valued across the country, including variations in location, size and property type.

What can international buyers take from these figures?

The latest figures highlight the considerable differences between Portugal's property markets, particularly between Greater Lisbon, the Setúbal Peninsula and the country as a whole.

For anyone considering a purchase in these areas, it's important to look beyond municipality-wide figures and examine prices in specific neighbourhoods to get a more accurate picture of the local market.

There are, of course, many reasons why properties can be valued differently, even within the same neighbourhood. The building itself, its condition, the standard of renovation, outdoor space, outlook and other characteristics can all make a substantial difference.

Bank valuations and market prices are also different measures. Both provide useful information, but neither replaces looking carefully at the individual property and relevant comparable transactions.

My view

In my experience, the real challenge is understanding the value of the individual property. Two homes within a short distance of each other can have very different values depending on the building, the quality of the renovation, outdoor space, outlook and numerous other details.

One issue I come across is where a garage or other non-habitable space has been converted into an additional bedroom, office or study, but the change of use has never been formally approved or registered. The space may be beautifully finished and perfectly useful to the buyer, but that doesn't mean the bank will recognise it as habitable accommodation when valuing the property. As far as the official records are concerned, it is still a garage.

This can create quite a difference between how a seller sees the property and how a bank values it. A seller might advertise a home for €500,000 on the basis that it has four bedrooms, including the converted space. However, if the official documentation only recognises three bedrooms, the bank may assess the property differently and, for example, return a valuation of €450,000.

That doesn't automatically mean the property isn't worth €500,000 to you. You may genuinely value the additional room and be perfectly happy to pay for the work that's been done. The important distinction is that the value you place on that extra space may not be reflected in the bank's valuation.

If you're relying on mortgage finance, that difference can have a very practical consequence: you may need to contribute more of your own money towards the purchase than you originally anticipated.

This is why I always think it's worth understanding not just how a property is being used, but how that space is officially registered, particularly when a conversion forms part of the asking price.