In recent years, houses prices in Portugal have been increasing, but it is in the Algarve that the appreciation is felt more intensely. According to data from the Real Estate Confidential, the Algarve registered in 2024 a 13.8% increase in housing prices, surpassing the national average and leaving behind the main cities of the country.
Algarve leads the climb of prices
The increase in the price of houses in the Algarve has been higher than in other regions of the country. In 2024, the valorization of housing in the region reached 13.8%, while the national average was at 11.0%. In comparison, Lisbon had a growth of only 5.5% and Porto 7.8%, demonstrating that the Algarve stands out as the most dynamic real estate market in the country.
The rhythm of growth in the Algarve accelerated compared to 2023, the year prices rose 9.2%. On the other hand, the Lisbon and Porto Real Estate Market softened, with values lower than the previous year. In 2023, the national average was 11.8%, Lisbon registered 6.3%and Porto 10.7%, which demonstrates a reversal of the trend for these cities.
Differences within the Algarve
Despite significant growth in the region, not all municipalities had the same behavior. According to the confidential real estate, 13 of the 16 municipalities of the Algarve registered an acceleration in the valorization of houses, showing a very dynamic market.
Loulé, Tavira and Lagos are some of the locations where the price of houses rose more significantly, with increases of 12.6%, 12.8%and 18.6%, respectively. Faro also saw prices grow 11.5%, consolidating itself as one of the most valued markets.
The largest climb in the entire region was registered in Vila Real de Santo António, where prices fired 26.0% in one year. This trend shows that demand is expanding to other areas of the Algarve, as well as more traditional tourist destinations.
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Reasons for appreciation
Several factors explain this rapid growth in the Algarve. The strong demand from foreign buyers is one of the leading drivers of rising prices, especially in the most touristy zones. Many investors are looking for the Algarve not only as a vacation destination, but also for permanent residence.
Another determining factor is the scarcity of supply, which has become more evident in recent years. The growth of tourism and the search for local accommodation have reduced the housing stock available for sale, causing prices to rise.
Perspectives for the future
With the prices of houses to reach record values, according to, many families and national buyers find it difficult to acquire a housing in the region. This phenomenon raises issues about long -term market sustainability.
Unless there is a significant increase in the offer of new buildings, prices may continue to rise. However, experts warn of a possible slowdown in the future if economic conditions change or international demand decreases.
Currently, the Algarve is still one of the most attractive real estate markets in the country, both for investors and for those who want to live by the sea. It remains to be seen whether this growth trend will be maintained in the coming years or if we will be facing a peak before a possible price adjustment.
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