The Algarve has established itself as one of the most attractive destinations in Portugal, not only for tourism, but also for residence. Its natural beauty, mild climate throughout the year and quality of life have attracted citizens from various parts of the world, who choose the region to live permanently or temporarily. This growing demand has had an impact on the rental market, resulting in a significant increase in rental prices. Find out now where it is cheapest and most expensive to rent a house in the Algarve.
According to the price index provided by , renting a house in the Algarve cost, on average, 14.3 euros per square meter (euros/m²) at the end of December last year 2024, considering the median value. Compared to the previous quarter, there was a drop of 2.3%, but the general trend over the last year has been upward in several municipalities.
Cities such as Albufeira and Faro recorded an increase of 13.9%, while Vila Real de Santo António rose 13.2% and Silves 10.3%. In Olhão and Portimão, the increase was more moderate, at 2.7%, while Lagos recorded an increase of 1.8%. Loulé remained practically stable, with a slight variation of 0.3%. On the other hand, Lagoa stood out for the 6.9% drop in rental prices.
Currently, Loulé is the most expensive municipality to rent a house, with average prices of 16.3 euros/m², according to . Next come Albufeira (15 euros/m²), Tavira (14.6 euros/m²), Faro (14.1 euros/m²) and Lagos (13.7 euros/m²). Portimão and Silves have values of 12.9 and 12.6 euros/m², respectively. Among the most economical are Olhão (11.5 euros/m²), Vila Real de Santo António (11.7 euros/m²) and Lagoa (12.3 euros/m²).
The growth in demand, driven by the interest of national and foreign residents, has put pressure on the local real estate market, making renting increasingly expensive. This reality raises challenges for both local inhabitants and those looking to move to the region, highlighting the need for housing policies that balance access to housing with the growing attractiveness of the Algarve.
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