Even a slight slowdown hasn't been enough to stop the rising house prices in Portugal. Recent data from the National Institute of Statistics (INE) shows that the median price of properties has risen by 6.8% in one year.

With property prices reaching €1,268 per sqm in the second quarter of 2021, it's the highest value recorded since 2019. In the Algarve, the average property costs €1,875 per sqm.

While the variation in prices in the region (+3.8%) was below the national benchmark, and represents a drop of 0.5 percentage points compared to the variation recorded in the first quarter of 2021, the Algarve remains the most expensive region in which to buy a house.

The highest year-on-year rates of change were registered in the Autonomous Region of Madeira, the Metropolitan Area of Porto and the Alentejo Coast, with an increase of 11.5%. At 9.7%, the year-on-year increase in the Metropolitan Area of Lisbon was still above the national average.

“The increase in the year-on-year rate of change between the first quarter of 2021 and the second quarter of 2021, from 3.1% to 6.8%, shows an acceleration in house prices, interrupting the deceleration seen in the last quarter,” reads the INE document published last week.

The figures come shortly after experts predicted a drop in prices from 2022, with the end of the moratoriums at the end of September this year (read more here).

Wondering if it's the best time to buy or even sell a property in the Algarve? Speak to the team at Algarve Home Sales here for advice on investing or living in the south of Portugal.