Algarve Rental Prices Skyrocket by 10.1% in September – Find Out Which Areas Are Most Affected!

Annual Rental Report Highlights

According to the latest data from the idealista price index, renting a house in the Algarve region now costs 16.1 euros per square meter (euros/m²) as of September, marking a significant 10.1% increase compared to the same month last year. On a quarterly basis, prices rose by 2.9%.

Municipal Breakdown in the Algarve

• Lagoa saw the highest annual increase at 21.2%, followed by Lagos at 20.8% and Albufeira at 16.4%.
• Other municipalities with notable rises include Olhão (14.8%), Vila Real de Santo António (11.2%), Silves (10.2%), and Portimão (3.5%).
• In contrast, Loulé experienced a decrease of -1.6%.

Ranking of Most Expensive Municipalities in the Algarve

• Loulé leads with 17.7 euros/m².
• Followed by Lagos (16.7 euros/m²), Albufeira (16.6 euros/m²), Lagoa (15.5 euros/m²), Silves (14 euros/m²), Portimão (13.9 euros/m²), Olhão (13.3 euros/m²), and Vila Real de Santo António (12.7 euros/m²).

National Overview

Nationally, rental prices increased by 4.1% in September, reaching 16.9 euros/m².

District Capitals and Autonomous Regions

• Prices rose in all analyzed capitals, with the highest annual increases in Viana do Castelo (23.8%), Bragança (19.8%), and Viseu (16.5%).
• Lisbon remains the most expensive city at 22.5 euros/m², followed by Porto (18.1 euros/m²) and Funchal (15.4 euros/m²).
• The most affordable cities are Bragança (7.1 euros/m²), Castelo Branco (7.3 euros/m²), and Viseu (7.9 euros/m²).

Districts and Islands

• All 17 districts and islands saw price increases, led by Castelo Branco (27.5%), Vila Real (23.0%), and Beja (17.9%).
• Lisbon is the most expensive district at 20.6 euros/m², with Porto (16.2 euros/m²) and Faro (16.1 euros/m²) following.
• The most economical areas include Portalegre (7.1 euros/m²), Viseu (7.7 euros/m²), and Vila Real (8.3 euros/m²).

Regional Analysis

• The Alentejo region recorded the highest annual increase at 15.3%, followed by the Center (12%), Algarve (10.1%), and Madeira Autonomous Region (8%).
• The Lisbon Metropolitan Area is the most expensive region at 20 euros/m², with the Algarve at 16.1 euros/m².
• The Center and Azores Autonomous Region have the lowest prices at 10.4 euros/m² each.

About the idealista Price Index

The idealista price index is based on advertised rental prices per square meter, excluding atypical listings and non-market prices. It includes single-family homes and filters out inactive ads, using the median of valid listings for accuracy.

Source: Idealista