Throughout 2021, property prices in Portugal continued to rise, peaking in the summer months with an average price of €1,311 per square meter (more here). This increase was most notable in the Algarve, says recent data released by the National Statistics Institute.

In addition, according to figures analysed by the Portuguese property site idealista, while the 3 most expensive municipalities to buy real estate are in the district of Lisbon, 5 of the 10 municipalities with the highest median house prices are in the Algarve.

Data shows that, during the third quarter of 2021, the average price of homes sold in the region was above the national average at €2,057 per square meter, and with a growth of 13.9% compared to the same period last year.

In the district of Faro, the Algarve's capital, the most expensive municipality in which to buy a home was Loulé (€2,498 per sqm), followed by Albufeira (€2,138 per sqm), Lagos (€2,109 per sqm), Tavira (€2,038 per sqm) and Aljezur (€1,906).

The most popular areas to buy real estate tend to be close to the coast – and therefore making prices more expensive –, but recent data also shows that there has been significant demand for properties in inland areas of Portugal.

According to an analysis by national property site Imovirtual, in 2021, inland areas recorded “a growth in demand for homes of 51% compared to 2019, and of 14% compared to 2020, which shows a great interest in these locations”.

Whether you're searching for a home in the Algarve countryside or closer to the coast, there are several wonderful properties available in the Algarve Home Sales portfolio. Browse at your leisure, and feel free to contact us if you would like more information.