Rental Prices Surge in the Algarve
In August, rental prices for houses in the Algarve increased by 10.4% compared to the same month last year. According to the idealista price index, the median cost to rent a home reached 16.1 euros per square meter (euros/m²) by the end of August. On a quarterly basis, prices rose by 6.1%.
Yearly Increases by Municipality
Over the past year, prices have climbed in several Algarve municipalities: Albufeira (21.5%), Tavira (19.7%), Lagos (12%), Vila Real de Santo António (6.4%), Portimão (4.9%), Olhão (4.6%), and Loulé (0.4%).
Most Expensive Municipalities to Rent
Loulé is the priciest area at 17.9 euros/m², followed by Albufeira (17.2 euros/m²), Lagos (16.6 euros/m²), Tavira (14.5 euros/m²), Portimão (14.2 euros/m²), Olhão (12.8 euros/m²), and Vila Real de Santo António (12.8 euros/m²).
National Overview
Nationally, housing prices increased by 3.3% in July, settling at 16.8 euros/m².
District Capitals and Autonomous Regions
Rental prices rose in various district capitals: Viana do Castelo (16.1%), Viseu (13.6%), Leiria (12%), Santarém (10.3%), Coimbra (10%), Castelo Branco (8.6%), Setúbal (7.3%), Braga (6%), Funchal (5.8%), Aveiro (3.9%), Lisboa (2.1%), Porto (1.6%), and Évora (1.5%).
Lisboa remains the most expensive city at 22.2 euros/m², with Porto (17.7 euros/m²) and Funchal (15.1 euros/m²) in second and third place. More affordable options include Castelo Branco (7 euros/m²), Viseu (8 euros/m²), Leiria (9.2 euros/m²), and Santarém (9.2 euros/m²).
Districts and Islands
Price increases were seen across all districts and islands, led by Vila Real (34.7%), Castelo Branco (26.1%), and Portalegre (18.5%). Lisboa is the most expensive district at 20.5 euros/m², while Portalegre offers the lowest prices at 7.2 euros/m².
Regional Analysis
In August, rental prices increased in all regions of Portugal. The Azores Autonomous Region led with a 15% rise, followed by the Madeira Autonomous Region (10.5%) and the Algarve (10.4%). The Greater Lisboa area is the most expensive region at 19.8 euros/m², with the Algarve at 16.1 euros/m².
About the idealista Price Index
The idealista real estate price index is based on advertised prices per square meter, excluding atypical listings and off-market values. It includes single-family homes and filters out inactive ads, using the median of valid listings for accuracy.
For the full report, visit: https://www.idealista.pt/media/relatorios-preco-habitacao/arrendamento/
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