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Real estate in the Algarve: the cheapest and the most expensive spots

Thinking of investing in real estate in the Algarve? This could be an interesting option for a long-term return on your money. The region is an increasingly attractive destination for this sort of investment. Here we show you where you’ll find the highest and the lowest prices.

The Algarve has everything going for it in terms of investment in real estate. Plenty of sun. Little rain. Stunning beaches, lovely nature reserves, breath-taking scenery, golf courses in spectacular locations, historical villas and large cities. And there is more, such as safety and quality of life, an international airport in Faro, and a motorway which brings the whole region closer together. As you can see, there is no shortage of good reasons to invest in real estate in the Algarve.

What is the best spot to invest in real estate in the Algarve?

The choice basically depends on your personal tastes – do you prefer the peace and quiet of the hills and fields, or the bustle of cities and beaches?

Another important factor which can help you make up your mind is the price of housing. The value of the real estate in this region varies greatly, based on how close one is to the coast. The prices also vary depending on the availability of golf courses in the neighbourhood. According to the Portuguese Statistics Office, prices in 2018 varied between 655 euros per metre squared in Monchique to 1,846 euros per meter squared in Loulé. These figures are based on the evaluation of the real estate by the tax office, which tends to be lower than the market value. For example, regarding Loulé, real estate listings on websites such as Idealista showed an average price of 2,662 euros for actual purchases, well over the reference of 1,846 given by the tax office.

The most expensive locations

Loulé

The city of Loulé has the most expensive square meter. This city includes some of the most glamorous beaches in the Algarve: Quinta do Lago, Ancão and Vale do Lobo, plus the famous Vilamoura Marina, a must for Algarve nightlife in the summer. The golf courses in Vilamoura, Vale do Lobo and Quinta do Lago are also worth mentioning and have greatly contributed to the economic development of the region.

Average price of real estate per sqm: 1,846 euros
Price variation in 2018: 11.88%

Lagos

Lagos is home to the second highest prices of real estate in the Algarve, according to official figures. The whole of the region of Lagos has undergone extensive economic development. The city itself is cosmopolitan and faces the ocean. It is dynamic, growing, has commerce and boasts good services.

Average price of real estate per sqm: 3,013 euros
Price variation in 2018: 12.15%

Albufeira

The third most expensive spot for investing in real estate in the Algarve is Albufeira. With the ever-present ocean, the beautiful beaches and bustling summer life are some of its strongest characteristics. Located just 40 km from Faro, Albufeira is home to the famous Olhos de Água, Salgados and Pescadores beaches. In 2011 national statistics showed that it was the region of Portugal with the highest concentration of foreign residents.

Average price of real estate per sqm : 1,631 euros
Price variation in 2018: 10.65%

The cheapest locations

Monchique

Monchique is the cheapest place in the Algarve for investing in real estate. Situated on the hill from which it gets its name, it is known as the “Garden of the Algarve”. It is famous for its thermal baths – the Caldas de Monchique – and is particularly sought after by people who enjoy relaxing with nature.

Average price of real estate per sqm: 655 euros
Price variation in 2018: 4.8%

Alcoutim

Alcoutim was, until recently, the municipality with the lowest prices in terms of real estate in the Algarve. Over the past few months, however, a steep rise in house prices has made the price per square meter shoot up. It is situated quite far from the coast, but it does have very beautiful fresh water beaches, such as the Pego Fundo.

Average price of real estate per sqm: 725 euros

Price variation in 2018: 34.5%

São Brás de Alportel

São Brás de Alportel ranks third in terms of most accessible prices of real estate in the Algarve. Near Faro, and just 18 km from the airport, São Brás de Alportel combines the benefits of being in a natural and mountainous region with the fact that it is relatively close to lovely Atlantic beaches. It is also an important centre for the cork industry, which makes it even more interesting.

Average price of real estate per sqm: 897 euros
Price variation in 2018: -1.32%

Average price of real estate per municipality

Municipality Average price of real estate (€/sqm) Annual variation (2017-2018)
Loulé 1,846 11.88%
Lagos 1,744 12.15%
Albufeira 1,631 10.65%
Tavira 1,594 17.03%
Algarve 1.465 11.24%
Lagoa 1,436 3.38%
Vila do Bispo 1,417 11.05%
Vila Real de Santo António 1,371 8.72%
Portimão 1,323 6.69%
Aljezur 1,290 10.07%
Castro Marim 1,277 11.33%
Faro 1,262 20.08%
Silves 1,241 6.98%
Olhão 1,164 25.84%
São Brás de Alportel 897 -1.32%
Alcoutim 725 34.51%
Monchique 655 4.80%

Source: INE. Average value per sqm, second quarter of 2018.

Made up your mind about where to buy a house in the Algarve, but need a loan?  NOVO BANCO can help you get what you’re after.

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