The Algarve home lease market has returned to signs of climbing, with a 10.4% homologous growth in June. The data were released on Tuesday, July 2, by the idealist, who presented the latest price index of the real estate portal. The median value per square meter in the region is now located at 15.6 euros.
Despite the trend of widespread increase, the values are not homogeneous in all municipalities. There are zones of the Algarve where leasing is still a budget challenge, but there are also municipalities that remain below the region’s average. The main difference is where you are looking for.
Sharp climbs in Albufeira, Faro and Olhão
According to the idealist, Albufeira leads homologous climbs, with an increase of 25.2%compared to June 2024. Faro (12%) and Olhão (11.7%), two cities with growing demand, of residents and tourists. Also lakes (8%), Vila Real de Santo António (6.1%), Silves (3.3%), Loulé (1.1%) and Portimão (0.9%) recorded increases, although on a smaller scale.
In total, all municipalities analyzed in the Algarve saw prices rise from the previous year, although the quarterly variation reveals a slight average descent of 2.1% in the region.
Loulé is the most expensive county to lease
Loulé remains the municipality with the highest prices in the region: 17.5 euros per square meter. Soon there are Albufeira (16.6 euros/m²), lakes (16.2 euros/m²), Faro (14.2 euros/m²), Portimão (13.9 euros/m²), Silves (13.4 euros/m²) and Olhão (13 euros/m²).
These values put several municipalities above the national average, which in June settled in 16.7 euros/m². International demand and the limitation of housing supply continues to justify pressure on prices.
The cheapest county in the Algarve
Among all the municipalities analyzed in the Algarve, Vila Real de Santo António emerges as the most affordable to lease home, with a medium value of 12.6 euros per square meter. Proximity to the border, the lowest population density and the absence of large tourist enterprises may justify this position.
According to the idealist portal, it is the only municipality of Algarve with a cost of less than 13 euros/m², standing out as an option to consider for those who want to live in the region at less high prices.
Algarve among the most expensive regions of the country
In regional terms, the Algarve remains one of the most expensive zones to lease housing. Only the Lisbon Metropolitan Area (19.7 euros/m²) and the Lisbon district (20.3 euros/m²) have higher values. The Madeira Region (14.4 euros/m²) and the North (14.5 euros/m²) follow the list.
Still, the idealist writes that the Algarve recorded one of the largest homologous climbs at national level, just behind the Center region (11.9%), and along with the Azores (10.4%).
Significant differences within the country
The data released also show significant contrasts at national level. While Lisbon maintains the most expensive city title to lease (22.2 euros/m²), cities such as Castelo Branco (6.8 euros/m²), Viseu (8 euros/m²) and Santarém (8.8 euros/m²) continue to offer values well below average.
This disparity, according to the idealist, reflects distinct dynamics of demand, investment and urban density, which shape the local market in each county.
Index calculates medium values and eliminates distortions
The index of based on the price supply prices built, as published by advertisers on the portal. Outstanding, atypical or off -standard ads are eliminated. Also included are unifamily houses, which allows a broader reading of the market.
The median is used as a reference value in order to reduce the impact of very high or very low price ads.
Lease in the Algarve remains a challenge
Despite punctual oscillations, the lease market in the region maintains a sustained climb trajectory. For those looking for home in the Algarve, the reality of prices invites you to a closer analysis and sometimes to consider municipalities less obvious.
Vila Real de Santo António is, at this moment, the clearest example that it is still possible to live in the Algarve with an income below the regional average. It remains to know how long more.
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