The prices of houses for rent in the Algarve registered a year-on-year decline of 3.3% in January, according to the idealista price index. According to the real estate portal, “renting a house in the Algarve had a median cost of 14.7 euros per square meter at the end of the month”.
Idealista emphasizes that this value represents a departure from the historical maximum of 16.1 euros per square meter, recorded in August 2025, adding that “this downward trend has been consolidating over the last four consecutive months”.
Evolution of prices in Algarve municipalities
Of the eight municipalities in the Algarve analyzed, rental prices increased in five, remained practically stable in Vila Real de Santo António and Loulé and fell in Silves. The biggest annual increases were recorded in Lagoa, Faro, Lagos and Olhão, followed by Portimão.
In the ranking of the most expensive municipalities to rent a house in the Algarve, Loulé leads with a median price of 16.8 euros per square meter, followed by Lagos and Faro. The most affordable prices are in Silves, Olhão and Vila Real de Santo António.
Algarve falling despite the national context
At a national level, idealista states that “prices of houses for rent fell by 1.9% in the last year”, having been falling for three consecutive months. Despite this, Faro appears among the district capitals with the highest annual increases, although the Algarve, as a region, recorded an overall decline of 3.3%.
According to the portal, “the Lisbon Metropolitan Area continues to be the most expensive region to rent a house”, followed by the Autonomous Region of Madeira and the Algarve.
To create the idealista property price index, the offer prices (based on built square meters) published by idealista advertisers are analyzed. Atypical advertisements and those with out-of-market prices are eliminated from the statistics.
“We also included the typology ‘single-family homes’ and discarded all ads that are in our database and that have not been interacted with by users for some time. The final result is obtained through the median of all valid ads in each market”, says idealista.
The full idealista report is available.
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