House sales prices in the Algarve increased by 13.8% in 2024, according to Confidencial Imobiliário’s Residential Price Index for the 4th quarter.
This growth exceeded the national average of 11.0% for the same period, as well as rates in Lisbon (5.5%) and Porto (7.8%).
The rate of interest in the Algarve accelerated compared to 2023 (9.2%), diverging from Lisbon and Porto, where the pace of increase slowed in 2024. Nationally, prices rose by 11.8% in 2023, 6.3% in Lisbon, and 10.7% in Porto – all higher than the 2024 rates.
Price trends in the Algarve generally reflect performance across the region, with price increases accelerating in 13 of the 16 municipalities.
Loulé, Tavira, and Lagos saw significant increases, reaching 12.6%, 12.8%, and 18.6% respectively, while Faro recorded an increase of 11.5%. Vila Real de Santo António experienced the highest increase in the Algarve, with a growth of 26.0%.
However, price increases slowed in three municipalities: Albufeira and Portimão, significant residential markets, and Silves. Albufeira saw a decrease of -0.6%, Portimão recorded a rise of 4.7%, and Silves increased by 10.8%.
The average sale price of housing in the Algarve reached €2,966/m2 in 2024, according to the SIR- Residential Information System. Loulé was the most expensive market at €4,138/m2, with all other municipalities selling below €3,500/m2. Lagos prices were €3,460/m2, Albufeira €2,909/m2, Faro €2,685/m2, and Portimão €2,630/m2.
Despite price fluctuations, the number of sales in the Algarve remained roughly the same as in 2023, with an estimated 11,100 transactions – a decrease of 2.5% annually. This contrasts with Lisbon and Porto, where sales increased compared to 2023.
