Property prices in The Algarve
What is the average price of a house in the Algarve, Portugal? The short answer is that real estate is surprisingly affordable, with prices comprised between €2,200 and €3,500 per square meter, on average.
The Algarve has long been one of the most popular destinations for holidaymakers and property investors from around the world. Despite its popularity, this beautiful Portuguese enclave has remained relatively unspoiled and has kept much of its authenticity.
Its year-round warm climate, beautiful beaches, low cost of living, outdoor lifestyle, exclusive golf courses, good infrastructure, charming villages and award-winning gastronomy have been well documented, contributing to the region consistently being labeled one of Europe’s top property hotspots.
The region is a consolidated destination in terms of real estate, with a wide range of properties, from apartments and villas in resorts to income-generating investment properties.
Algarve’s Property Market Update
Tourism plays an important role in the local economy and the region is particularly popular among British visitors.
The central and western Algarve tend to be more well-known thanks to resorts such as Praia da Luz, Lagos and Albufeira. The Eastern Algarve has a different feel, with pretty, authentic towns offering a slower pace of life such as Tavira.
Figures from Portugal’s Institute of Statistics’ (INE) for 2021 show that the number of sales transactions in the country went up by 20.5% (165,682 sales) compared to 2020.
Property prices in Portugal are accelerating in 2022
Comparing the Algarve with Paris (France) and London (United Kingdom)
For foreigners, Portuguese property is astonishingly cheap. Indeed, you could expect real estate prices to be expensive in a region of such beauty, located a couple of hours away from London or Paris by plane, right? But that’s not the case at all.
While property prices in Paris, and London, are mostly comprised between €10,200/m2 and €15,000/m2, the Algarve remains very inexpensive for foreign buyers, at around €2,500/m2.
Why do we talk about prices in France and in the UK? Well, because the French and the British are the most important nationalities of foreign buyers, both keen on the Algarve too, together with the Germans, the Americans, the Spanish, the Swedish, the Norwegians, the Danish, or the Swiss.
Real Estate Prices in Algarve’s cities - €2,200 to €3,500
The Algarve has consistently been the most popular region among foreign buyers and prices are fairly affordable. According to Idealista’s data, average property prices in the Algarve are below €3,000 per square meter:
- Albufeira €2,941/m2
- Faro €2,420/m2
- Lagos €3,268/m2
- Portimao €2,305/m2
- Silves €2,342/m2
- Tavira 2,577/m2
Also, the latest figures from Idealista show a year-on-year increase across the region of 14.7% to €2844/m2 in August 2022. So we can say that the real estate market is stable, and prices have kept growing since 2016 in a healthy manner: no house price boom, but continued growth.
A fairly resilient property market
Portugal is seen as a fairly resilient property market, especially in areas such as The Algarve, which has seen consistent annual price rises and rising tourism figures.
Contact our property advisors to know more
Thinking of buying a property in Portugal?
Get in touch with our local experts to make your home purchase a success.