Algarve Real Estate Prices Surge 9.4%: What You Need to Know

Algarve Housing Prices Soar

The Algarve region has witnessed a significant increase in housing prices, climbing 9.4% in December 2024 compared to the same month the previous year. According to the idealista price index, the median cost to purchase a home reached €3,528 per square meter by the end of December.

Quarterly Trends

In terms of quarterly variation, prices rose by 1.3%.

Municipal Highlights

Analyzing specific municipalities, the price hikes varied:

• Silves: 15.1%
• Lagoa: 13.7%
• São Brás de Alportel: 11%
• Portimão: 10.6%
• Faro: 9%
• Vila Real de Santo António: 7.4%
• Olhão: 7.3%
• Lagos: 7%
• Loulé: 6%
• Albufeira: 5.8%
• Tavira: 4.9%
• Vila do Bispo: 4.1%
• Aljezur: 0.9%

Conversely, Monchique saw a stabilization of prices with only a 0.5% increase.

Most Expensive Municipalities

The municipality with the highest prices is Loulé at €4,193/m², followed by Lagos at €4,024/m² and Vila do Bispo at €3,878/m². The more affordable options include Alcoutim at €1,190/m² and Monchique at €2,249/m².

National Overview

On a national scale, housing prices increased by 10.4%, averaging €2,827/m² during the same period.

District Capitals

In 2024, house prices surged in 20 district capitals, with Vila Real (21.2%), Évora (17.9%), and Leiria (15.4%) leading the charge. The most expensive city remains Lisbon, with prices at €5,718/m².

Regional Price Dynamics

Across the regions, the highest price hikes were seen in São Miguel (17.6%), followed by Porto Santo (16%) and Porto (15.9%). The Norte region leads with an increase of 16%, making it the most expensive area to buy housing at €2,440/m².

Idealista Price Index Methodology

The idealista price index is derived from the prices of properties listed on the idealista platform, ensuring that atypical listings and outliers are excluded from the statistics. The final result represents the median of all valid listings.

For more detailed insights, visit the complete report here.