The official figures are in: Portugal’s real estate market saw significant expansion in 2024. With home sales increasing by 14.5% compared to the previous year, property prices also rose by an average of 9.1%, reflecting strong demand.

According to data from the National Statistics Institute (INE), the national housing price index saw a year-on-year increase of 9.1%, driven by heightened demand and limited supply.

The latest data shows that transactions in both new and existing homes contributed to this rise, with new-build properties seeing an 8.7% increase in prices and existing homes growing by 9.2%.

Faro, the district covering the Algarve, recorded a 13.9% increase in home sales. While slightly below the national average, this growth underscores continued demand for property in one of Portugal’s most sought-after locations.

But while these trends highlight a dynamic real estate market across the country, recent reports suggest that property prices may begin to stabilise, particularly in key regions like the Algarve.

Thanks to increased supply helping to moderate the rapid appreciation seen in recent years, industry experts are anticipating a slowdown in price growth going forward. It’s a different picture to what was painted previously, but also a reminder that there’s no crystal ball when it comes to the Algarve’s real estate market.

While it may mean that sellers start adjusting expectations, one thing is certain: the region remains an attractive option for potential buyers who may have more opportunities without facing steep increases.

Whether you’re looking to sell your property at the best price or invest in your next home, Algarve Home Sales has decades of unparalleled local market expertise, so get in touch!