The price of houses to lease in the Algarve recorded a significant increase of 19.3% in February 2025, compared to the same month of the previous year, becoming the region with the highest rise at national level, according to the idealist price index. Regarding quarterly variation, prices rose 10.9%. The average cost of lease in the region was set at 15.8 euros per square meter (euros/ m2), reflecting a significant appreciation in the last year.
Greatest climbs
Within the Algarve, in homologous terms, Faro registered an increase of 16.7%, while lakes and Olhão had rises of 8.7%and 8.4%, respectively. Loulé, with a growth of 6.2%, and Portimão, with 5.7%, also accompanied this trend of valorization of the lease market.
The most expensive municipality to lease home in the region remains Loulé, where prices reached 17 euros/m2, followed by lakes (14.9 euros/m2), Faro (14.2 euros/m2), Portimão (13.7 euros/m2) and Olhão (12.2 euros/m2), the latter the most affordable in the region.
At national level, the average price of rent rose 3.9% in February, located at 16.4 euros/m2. Among the capital cities of the district, Faro stands out as the fourth most expensive in the country to lease home, with 14.2 euros/m2, behind Lisbon (21.8 euros/m2), Porto (17.2 euros/m2) and Funchal (16.1 euros/m2). In addition, the district of Faro recorded the highest percentage growth in the price of rents among the 17 analyzed districts, consolidating the real estate pressure in the Algarve and highlighting the challenges of housing accessibility in the region.
The impact on the real estate market
The Algarve reinforces its position as one of the most valued regions of the country, being only surpassed by the Lisbon Metropolitan Area (19.5 euros/m2) in terms of average lease cost. The pricing tendency puts added challenges to residents in a context where tourist demand and foreign investment continue to boost the local real estate market.
The report of It points out that the amounts presented result from the analysis of supply prices published by advertisers, excluding atypical or outdated ads. With a constantly evolving market, the Algarve remains at the center of attention, both for investors and for those looking for housing in the region.
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