Portugal Apartment Bank Valuations: What the January–February 2026 Data Shows

Every month, Portugal's national statistics institute INE publishes bank valuation data for residential properties — the median price per square metre that banks are assigning to apartments across the country. This figure matters: it influences mortgage approvals, shapes buyer expectations, and acts as one of the most reliable real-time indicators of where the property market is heading.

The latest release covers January and February 2026 for major Portuguese municipalities. The headline is Aveiro, which jumped +6.2% in a single month. But there are other stories worth telling — a surprising dip in Coimbra, a flat Faro, and the enduring 2.3x gulf between Lisbon and Braga that shows no sign of closing.

Aveiro: The Fastest-Moving Market Right Now

Aveiro recorded the largest month-on-month increase of any major city, rising from €2,112/m² in January to €2,242/m² in February 2026 — a jump of +6.2%. That is a significant single-month move for a market that, until recently, flew well under the radar.

Aveiro has been gaining momentum for several years, driven by its university, improving transport links to Porto, and a growing reputation as an alternative base for remote workers priced out of coastal cities. Its designation as a "smart city" and investment in cycling infrastructure have added to its appeal. The February figure confirms what locals and early investors have been watching: Aveiro's property market is catching up fast with Portugal's established urban centres.

At €2,242/m², it remains significantly cheaper than Porto (€3,187/m²) or Lisbon (€4,633/m²), which means there is still a meaningful gap to close — and potential for continued upward movement.

Setúbal: Consistent Momentum

Setúbal recorded the second-largest monthly increase among major cities, rising +3.5% from €2,470/m² to €2,557/m² in January 2026. This continues a pattern that has been building over the past year.

Setúbal's rise is partly driven by spillover from Lisbon — buyers who cannot afford prices in the capital, or who are choosing to trade commuting distance for significantly lower prices. At roughly 55% of Lisbon's per-square-metre valuation, Setúbal offers a genuine alternative for buyers who need to remain within reach of the capital while keeping mortgage costs manageable. The Fertagus cross-river rail link makes the commute viable.

Funchal and Porto: Steady Upward Trajectory

Funchal, Madeira's capital, rose +2.9% from €3,028/m² to €3,117/m² — continuing its position as one of Portugal's more expensive property markets outside Lisbon and Cascais. Demand from international buyers, limited land availability, and Madeira's growing status as a remote-work destination continue to support prices. Porto climbed +2.6% to reach €3,187/m² in February, its highest recorded figure in this dataset.

Both cities have been on consistent upward trajectories, and the latest data shows no sign of that changing. Porto in particular has been closing the gap with Cascais — now just €725/m² apart, compared to a wider gap a year ago.

Coimbra: A Rare Dip

Coimbra is the one major city that bucked the trend, falling -1.0% from €2,178/m² in January to €2,157/m² in February 2026. A single-month decline of this magnitude is not necessarily alarming, but it is worth watching in the context of a market where almost everything else is rising.

University cities can behave differently from purely residential or tourism-driven markets. Demand can be more seasonal, more sensitive to student intake cycles, and less driven by the international buyers who have been pushing valuations upward elsewhere. Whether February's dip is noise or the start of a correction will become clearer in the March release.

Faro: Frozen at the Top of the Algarve Market

Faro recorded essentially no change — €2,750/m² in December 2025 to €2,749/m² in January 2026. In a market where everything around it is moving, a flat reading is notable. Faro is the Algarve's administrative capital rather than its premium resort destination (Albufeira, Vilamoura, and Lagos command higher valuations in their own right), which may explain the relative stability.

Lisbon and the Enduring Price Gap

Lisbon continues to sit in a tier of its own among Portuguese cities. At €4,633/m² in January 2026, it is 2.3 times more expensive than Braga (€1,986/m²) and nearly twice Setúbal's valuation. The +1.7% monthly increase adds €77/m² in absolute terms — which at the scale of a 90m² apartment represents an additional €6,930 in bank-assessed value, added in a single month.

Cascais, at €3,912/m², continues to occupy a distinct premium position relative to other Lisbon-area municipalities. The Cascais line remains one of the most desirable commuter corridors in the country, and valuations reflect that consistently.

What This Data Means for Buyers and Investors

A few practical conclusions from this month's data:

• Aveiro is the market to watch. Still affordable relative to Porto and Lisbon, but moving fast. Buyers who have been considering it should not assume current prices are stable.
• Setúbal offers genuine Lisbon-adjacent value. The +3.5% monthly rise suggests the market is increasingly pricing in the commuter premium.
• Coimbra bears monitoring. The -1.0% dip may be seasonal or one-month noise, but it stands out relative to peers.
• Braga remains Portugal's most affordable major city at €1,986/m², with the smallest monthly movement (+0.3%). For buyers prioritising value in a northern urban centre, the data continues to point here.
• Faro's flat reading could signal a consolidation phase, or simply reflect the off-season timing of the January release. Algarve markets typically move more dramatically in spring and summer data.

Bank valuations are a lagging indicator — they reflect transactions that have already completed or mortgage applications that have already been assessed. But as a monthly data series covering all Portuguese municipalities, they remain one of the most consistent tools available for tracking real market movement.

All the underlying data used in this analysis is available across all 308 Portuguese municipalities at OndeVende.pt, updated as new INE releases arrive.