With property prices stabilising in major cities and increasing in key locations like Faro, knowing where to buy in the Algarve has become essential.

In recent months, property prices in Portugal have shown varied trends, with overall stability in major cities like Lisbon and Porto but notable increases in areas such as the Algarve.

According to the latest data from national property site idealista, the average national price in October 2024 was approximately €2,733 per square metre, marking a 9.4% year-on-year increase.

While Lisbon continues to be the most expensive city, with an average of €5,655/sqm, prices have risen in eight district capitals across Portugal. Reflecting its growing demand, the Algarve's capital of Faro saw a significant rise to €3,143/sqm.

This 4.1% monthly price increase places it among the fastest-growing cities, along with cities in Madeira and the Alentejo. It underlines the heightened interest in areas that offer quality of life and natural beauty away from the country's busier urban centres.

Overall, the Algarve is now the second most expensive region, with an average property cost of €3,522/sqm, behind only the Lisbon Metropolitan Area (€3,788/sqm). According to the latest predictions, the trend of rising property prices is set to continue into 2025.

While these increases might seem daunting for potential buyers, a local estate agent can provide insights into emerging neighbourhoods and investment opportunities to help you find the ideal home despite rising prices.

If you're looking to potentially secure an Algarve property with better value, get in touch with Algarve Home Sales for assistance in navigating the region's competitive housing landscape.