There may be expectations that property prices are set to stabilise in 2025, but that doesn’t change the fact that the Algarve is home to some of Portugal’s priciest properties.

According to the latest data from the National Institute of Statistics (INE), six out of the 10 most expensive Portuguese municipalities for property purchases are located in the southern region.

Lisbon comes out as the most expensive municipality, with a median price per square metre of 4,252 euros. Cascais follows closely behind at 4,023 euros/sqm. However, the Algarve is well represented, with Lagos being the third most expensive municipality in the country at 3,389 euros/sqm.

Other costly areas in the region include Loulé, where properties were sold at 3,267 euros/sqm, and Aljezur, where prices averaged 3,050 euros/sqm. Vila do Bispo and Albufeira also saw high costs, with homes priced at 2,927 euros/sqm and 2,867 euros/sqm, respectively. Even in Tavira, one of the least expensive Algarve municipalities on this list, house prices still reached 2,754 euros/sqm.

The cheapest places to buy

On the other end of the spectrum, there are still places in Portugal where homes remain highly affordable. In 12 municipalities, it is possible to buy a 100-square-metre house for less than 30,000 euros.

The cheapest municipality is Pampilhosa da Serra, where homes are sold at just 220 euros/sqm. Mação follows closely, with prices at 243 euros/sqm, and in Vimioso and Figueira de Castelo Rodrigo, the cost of purchasing a house is 250 euros/sqm.

These price differences highlight the strong regional disparities in Portugal’s real estate market, where urban and coastal areas command much higher prices than rural inland areas.

For those looking to buy in Portugal, choosing between affordability, location and lifestyle remains key. For advice on finding your perfect Algarve property, contact us at Algarve Home Sales.