According to this study, the average price per square meter (m2) reached 1,355 euros in 2021, representing an increase of 9.4%, with the value of accommodation traded over the past year having reached €28.1 billion, 31.1% more than in 2020.
"This dynamic has been accompanied by a sharp growth in bank financing for the purchase of housing", indicates the study, emphasizing, however, that the assessments required by banks to grant these loans are not always following the market trends.
"There are counties in which the values of the houses traded far exceed what is, in theory, the real value", says the BA&N 'research' unit, specifying that the "price escalation has been accompanied" by the assessment attributed by expert evaluators, "but not entirely".
For BA&N, "in the light of the assessments made by the experts, there is an overvaluation of properties at the time of the transaction, which at the national level is 5.4%", taking into account bank valuation data and housing prices released by the Institute Statistics, (INE), with reference to the end of 2021.
On average, in the fourth quarter of 2021, the price per square meter of bank valuation was 1,285 euros, while the average sale price amounted to 1,355 euros per square meter.
The existence of purchase and sale values above the values at which experts evaluate properties when applying for financing makes it more difficult for families to obtain credit approval, notes the study, noting that banks use the valuation to calculate the amount of the loan to be granted.
"Taking into account this rule, and in light of the existing differential between the average purchase and sale prices and those of valuations, often only with a high level of equity capital is it possible to obtain financing", reads the analysis.
This differential varies from region to region, with the Algarve having the highest transaction prices in comparison with the assessments carried out by experts registered with the Portuguese Securities Market Commission (CMVM).
In the case of this region, the average purchase price per square meter amounted to 2,114 euros at the end of last year, against an average valuation of 1,731 euros, "which implies an overvaluation of properties by 22.1%", in the case of the Algarve.
A municipal analysis indicates that in the municipalities of Lagoa and Lagos the difference between the price paid for the properties and the value attributed by the experts to the evaluated houses is around 42%. In the first case, the average sale price amounted to 2,351 euros per square meter and the valuation price to 1,658 euros. In Lagos, the amounts were, respectively, 2,547 euros and 1,843 euros.