Property prices have been in the news for a while now, as the latest forecasts point to a gradual drop across Portugal. But in August, at least, prices rose in several regions in the Algarve.

Compared to the previous month, house prices in the Algarve increased 1.2% last month, according to the latest property price index from idealista. It was the second region with the biggest rise, following the Autonomous Region of the Azores at 1.5%.

Buying a house in the Algarve now costs an average of €3,215 per square metre, compared to the national average of €2,526. According to the Portuguese property platform, this represents a quarterly increase of 1.8% and an annual increase of 13%. But where were the biggest rises in the region?

Monchique (3.5%), Lagos (1.9%) and Aljezur (1.7%) were the Algarve municipalities that registered the most significant rises in the property market. They were followed by Loulé, São Brás de Alportel, Albufeira, Lagoa, Portimão and Silves.

Despite the rises in these areas, the most expensive municipality to buy a house is still Loulé (€3,989/sqm), followed by Lagos (€3,643/sqm) and Aljezur (€3,592/sqm), both of which have seen significant increases.

On the other end of the scale, prices only fell in Castro Marim (-4%), Vila do Bispo (-1,2%) and Vila Real de Santo António (-1,2%). The municipalities that currently register the lowest property prices are Alcoutim (€753/sqm), São Brás de Alportel (€2,335/sqm), Monchique (€2,372/sqm), Portimão (€2,499/sqm) and Olhão (€2,718/sqm).

Whichever area you're looking to buy a home or invest in property, the Algarve Home Sales team is here to help. Contact us for everything you need to find your perfect property.