The median cost of houses in the Algarve was 4,069 euros per square meter, representing an annual increase of 9.6%, according to the price index for June 2026. In quarterly terms, there was also an increase of 2%.
The region remains the second most expensive in the country, behind only the Lisbon Metropolitan Area, in a context of continued pressure on the housing market, especially in areas with greater tourist and residential demand.
Municipal disparities and strong valuations in several municipalities
Among the Algarve municipalities, Loulé has the highest values, with 4,663 €/m², followed by Lagos (4,639 €/m²) and Albufeira (4,060 €/m²). Faro registers €3,766/m², confirming itself as one of the most valued markets in the region.
With regard to annual evolution, Monchique recorded the biggest increase in the Algarve (32,1%)followed by São Brás de Alportel (23.3%) and Castro Marim (17.7%). Conversely, only Alcoutim showed a decline of 11.7%, remaining as the municipality with the lowest prices in the region, at 1,053 €/m².
At a national level, house prices increased by 8.9% compared to the same period of the previous year, standing at 3,156 euros per square meter, according to the same index. The appreciation trend was transversal to the territory, with increases recorded in all regions and district capitals analyzed.
Lisbon remains the country’s main real estate market, with a median value of 6.107 €/m²followed by Porto (€4,053/m²), Funchal (€3,921/m²) and Faro (€3,766/m²).
The biggest annual variations were observed in cities in the interior, with emphasis on Portalegre (25.8%), Castelo Branco (24.3%) and Santarém (24.2%), signaling an acceleration in prices outside the main urban centers.
By region, Alentejo led the increases (18.7%), followed by the Center (14.3%) and the Azores (10%). The Algarve registered a more moderate evolution, but remains among the most valued markets in the country.
The Lisbon Metropolitan Area continues to be the most expensive region, with €4,403/m², followed by the Algarve and the Autonomous Region of Madeira (€3,697/m²), while the Center remains the most affordable region for purchasing housing.
EJ / CM
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