Bank valuations surge 16.5% and mortgage lending grows by more than 10%

The housing construction sector showed signs of recovery in the first quarter of 2026, with cement consumption growing 2.2% compared to the same period of the previous year, reaching 960,000 tons.

The data reveals a reversal of the contraction trend observed in recent months and point to a strengthening of activity in the residential house building sector.

Despite this positive performance, the evolution of housing planning permission licensing continues to show signs of slowing down.

Between January and March, 4,930 housing construction and rehabilitation projects were licensed, 10.2% less than in the same period of 2025.

The number of new approved dwellings also registered a reduction, although less pronounced. In total, 10,155 dwellings were licensed, corresponding to a year-on-year decrease of 4.7%.

Housing credit increases by more than 10%

In contrast to the decrease in licensing, mortgage for home purchases maintained a growth trajectory.

By the end of March, the amount of new housing credit, excluding renegotiations, totalled €5,717 million, representing an increase of 10.6% compared to the same period last year.

The evolution of credit occurred in a context of a slight increase in interest rates, which interrupted the downward trend recorded in previous months. In March 2026, the average interest rate applied to housing credit was 3.09%.

Bank valuations surge 16.5%

The residential market continues to register strong property appreciation.

In March, bank valuations of housing increased by 16.5% year-on-year, driven mainly by the apartment segment, which recorded a 21.2% increase.

Houses, on the other hand, showed a more moderate, albeit significant, growth of 12.6%.

The data confirms the persistent pressure on housing prices, in a context where demand continues to exceed the supply available on the market.

Sources: Diário Imobiliário; INE.