What Does the Real Estate Market Look Like in the Algarve in 2024?
The Algarve is one of the most dynamic regions in the country in terms of the real estate market. Its growing attractiveness has significantly contributed to the rise in national prices.
In 2024, despite rising prices and government decisions to end a favorable tax regime, the region’s real estate market remains as dynamic as in previous years, with variations depending on the city. The Algarve’s real estate market is quite varied, ranging from city apartments to villas with pools, traditional rural houses with whitewashed walls, quintas, and even palacetes—more or less traditional Portuguese manors.
Villas with pools and/or sea views, new luxury apartments, and properties highlighting sustainable and eco-friendly features are the most sought after.
The Price per Square Meter in the Algarve, Portugal
The Algarve is the second most expensive region in Portugal after Lisbon. The median price for a house in the Algarve in 2024 is around €3,900/m² for a house and €3,700/m² for an apartment.
Here are the prices per square meter by locality:
| Locality | Price/m² |
|---|---|
| Loulé | 4100 €/m² |
| Lagos | 3800 €/m² |
| Vila do Bispo | 3700 €/m² |
| Aljezur | 3600 €/m² |
| Lagoa | 3500 €/m² |
| Albufeira | 3400 €/m² |
| Tavira | 3100 €/m² |
| Faro | 3000 €/m² |
| Castro Marim | 2900 €/m² |
| Vila Real de Santo António | 2800 €/m² |
| Monchique | 2300 €/m² |
| São Brás de Alportel | 2500 €/m² |
| Portimão | 2600 €/m² |
| Silves | 2800 €/m² |
| Olhão | 2800 €/m² |
Evolution of Real Estate Prices in the Algarve
In the past ten years, real estate prices in Portugal have been steadily rising, with an increase of nearly 50% between 2016 and 2021, continuing up to 2024. The Algarve is one of the regions most affected by this increase, with a rise of 10% in 2021, 8% in 2022, and another 8% in 2023. The increase slows down in 2024, a consequence of the balance between supply and demand and political decisions aimed at curbing real estate speculation.
Regarding localities, after some spectacular increases in certain cities (50% in Alcoutim, 24% in Lagos, 17% in Portimão…), prices seem to stabilize in 2024. The increase affects the cities of Lagoa (2.7%), Aljezur (1.8%), Loulé (1.4%), Portimão (0.8%), Castro Marim (0.8%), and São Brás de Alportel (0.6%). Prices stabilize in Monchique (0.5%), Silves (0.4%), Olhão (0.4%), Albufeira (0.2%), Faro (-0.1%), Lagos (-0.3%), and Vila Real de Santo António (-0.4%), and some cities even see price decreases, such as Vila do Bispo (-1.8%) and Tavira (-0.7%).
How to Find a House in the Algarve
There are several ways to find a house, even when living abroad.
For your searches, prioritize real estate platforms like Green-acres, which list many ads translated into 21 languages. The advantage of these platforms is that they group many agencies, ensuring you don’t miss out on a gem!
If you don’t want to do the searches yourself, hire a housing hunter. They will sift through and present you with pre-selected properties based on your criteria.
The last option is to go directly to the country and look at agencies on-site, or even for-sale signs! For this option, it’s preferable to speak Portuguese well.
Remember that when buying abroad, it is highly recommended to hire a lawyer to check all the documents. In France, for example, this work is done by a notary, but this is not necessarily the case in Portugal! When buying abroad, it’s best to take all possible precautions to avoid unpleasant surprises.
Where to Buy in the Algarve?
To find the location that suits you, you must first know what lifestyle you want to have in southern Portugal.
- Albufeira, the most touristic city in the region, is famous for its dynamism and festive beaches. The airport is 30 km away.
- Lagos is a dynamic city, both modern and traditional.
- Vilamoura, known for its golf courses and chic marina, will appeal to those seeking a high-end lifestyle.
- Tavira will appeal to those looking for a quiet setting and peaceful beaches.
- Carvoeiro, located close to tourist attractions, is ideal for second homes.
In Summary: An Affordable and Profitable Region
In conclusion, the Algarve continues to attract European buyers looking for real estate investment in a sunny coastal region. Whether you’re looking for a second home to escape the harsh winters of northern Europe or a house to live in retirement in an idyllic setting, the Algarve has something for everyone. The region continues to invest in its infrastructure and diversify its leisure offerings, ensuring a pleasant and dynamic living environment. Don’t wait to explore the possibilities the Algarve offers and turn your dream of owning property in the sun into reality.
