Information on the price per square meter for the real estate market in Algarve in 2025 for both purchase and rental. Prices of villas, houses, and apartments per square meter in the Algarve, Southern Region. And rental market prices per square meter.
Contact us to discuss your real estate project in AlgarveLast updated: 03/21/2025
Algarve continues to maintain its status this year as a top choice in Europe for real estate investment, thanks to its exceptional climate, offering over 300 sunny days per year, its fine sandy beaches bordered by majestic cliffs, and a globally recognized superior quality of life. These natural assets, combined with a rich culture, refined gastronomy, and outstanding infrastructure, make Algarve an ideal place to live or invest in Portugal.
In 2025, the Algarve real estate market records a steady and moderate increase in price per square meter, reflecting the region’s enduring attractiveness to both national and international investors. This rise confirms the strength and maturity of the local real estate market, which offers interesting returns for primary residences, secondary homes, and properties intended for rental investment.
Our in-depth analysis of real estate prices per square meter for 2025 highlights this favorable trend, while emphasizing disparities between sectors. Coastal areas, such as Quinta do Lago, Vale do Lobo, Vilamoura, and Lagos, continue to see the highest rates, supported by their tourist and residential appeal, while inland locations offer more accessible opportunities.
This study aims to provide investors, potential buyers, and future residents with a clear view of current trends, enabling them to make informed decisions in a constantly evolving real estate market.
TABLE OF CONTENTS
| Location | Property Type | Condition | Average Selling Price per Square Meter | Annual Variation |
| Algarve | Apartment | Good condition / New / Renovated | 4,150€ | +10.81% |
| Algarve | House / Villa | Good condition / New / Renovated | 4,650€ | +10.71% |
| Region | Property Type | Condition | Average Monthly Rent per Square Meter | Annual Variation |
| Algarve | Apartment | Good condition / New / Renovated | 16€ | +3.25% |
| Algarve | House / Villa | Good condition / New / Renovated | 17€ | +6.25% |
The year 2025 in the Algarve confirms a slight increase in prices, continuing the trend observed in 2024 after a period of steady growth. This moderate evolution reflects the sustained demand, especially in the coastal areas and the main tourist centers. The regulations introduced to curb real estate speculation have not dampened the interest of foreign and national investors seeking quality properties, especially new developments and residences with high quality services.
Recent data highlights several key trends and market dynamics:
The real estate market in the Algarve remains attractive and continues to show controlled growth, without excessive price increases. Since 2016, the region has seen a progressive and sustainable increase, consolidating its status as a preferred destination for real estate investment and second homes.
Average asking price per sqm (new/renovated/good condition).
| Municipality | Price per sqm | Apartment (€/sqm) | House / Villa (€/sqm) |
| Albufeira | 4,450€ | 4,000€ | 4,900€ |
| Almancil | 6,900€ | 5,500€ | 7,350€ |
| Alvor | 4,000€ | 3,900€ | 4,100€ |
| Boliqueime | 3,900€ | 2,600€ | 3,900€ |
| Cabanas de Tavira | 3,700€ | 3,750€ | 3,500€ |
| Castro Marim | 3,050€ | 4,700€ | 2,900€ |
| Carvoeiro (City Center) | 5,000€ | 4,200€ | 5,800€ |
| Faro (City Center) | 3,400€ | 3,400€ | 3,300€ |
| Fuseta / Moncarapacho | 4,000€ | 4,000€ | 4,000€ |
| Lagoa (City Center) | 3,800€ | 3,000€ | 4,350€ |
| Lagos center | 4,950€ | 4,100€ | 6,650€ |
| Loulé Centre (São Clemente) | 4,200€ | 3,200€ | 4,500€ |
| Loulé West (São Sebastião) | 4,300€ | 3,250€ | 4,600€ |
| Luz de Tavira | 4,400€ | 3,300€ | 5,100€ |
| Monte Gordo | 3,700€ | 3,800€ | 3,200€ |
| Olhão Centre | 4,100€ | 4,200€ | 4,000€ |
| Portimão (City Center) | 2,900€ | 2,900€ | 3,150€ |
| Quarteira (City Center) | 5,000€ | 4,800€ | 5,550€ |
| Santa Luzia (Tavira) | 4,000€ | 3,800€ | 4,200€ |
| São Brás de Alportel | 3,350€ | 2,200€ | 3,450€ |
| Silves | 4,200€ | 2,800€ | 4,300€ |
| Tavira (City Center) | 4,200€ | 3,700€ | 4,400€ |
| Vila Real de Santo António | 2,900€ | 3,000€ | 2,800€ |
| Vilamoura | 5,650€ | 5,450€ | 6,000€ |
The Algarve remains a highly sought-after region, with particularly strong demand in coastal areas and tourist towns such as Tavira, Lagos, Faro, Vilamoura and Albufeira. Luxury properties and villas with sea views continue to hold their value, reflecting the region’s continued appeal to a discerning international clientele.
The trend for 2025 suggests a slight increase in prices, influenced by the post-pandemic economic recovery and growing interest in holiday homes and properties suitable for remote working. This forecast of moderate price increases reflects renewed confidence in the Algarve property market.
The Algarve market is characterized by a wide variety of properties, ranging from modern apartments in urban centers to luxurious seaside villas. The segmentation shows an increased demand for environmentally sustainable properties equipped with modern technologies.
The trend towards more sustainable and technologically advanced homes is confirmed in Algarve. Interest in properties offering generous outdoor spaces and wellness-promoting amenities is rising, catering to the needs of a lifestyle increasingly oriented towards well-being, quality of life, and nature.
Villas with pools and sea views and luxury apartments in new developments remain in high demand. Properties with sustainability features and energy efficiency are also gaining in popularity.
Investing in the Algarve in 2025 remains a wise decision, given the stability and positive outlook of the real estate market. The region continues to offer an unparalleled quality of life, supported by a stunning natural environment and a welcoming community. Trends show a shift towards more sustainable real estate and a lifestyle that is more focused on wellness, in line with the values of today’s buyers. With prices expected to rise slightly this year and next, the Algarve remains a prime destination for the purchase of a first home, second home or long-term rental investment.
“As a real estate agent in the Algarve, my mission is to navigate the complexities of the local market to uncover the best real estate opportunities for my clients.
The Algarve’s enduring appeal, not only for its climate and idyllic landscapes, but also for the quality of its infrastructure and real estate, continues to attract an international clientele in search of primary residences, second homes or investment properties. The variety of properties available, from modern city apartments to luxurious seaside villas, caters to a wide range of tastes and budgets.
However, navigating the Algarve market requires a thorough knowledge of the different areas and their specifics. For example, the areas of Lagos and Vilamoura remain highly sought after for their leisure facilities and vibrant social life, while places like Tavira attract those seeking a more authentic and tranquil Algarve experience. The key is to understand each client’s needs and desires in order to guide them to the sector that best suits them.
My role is to assist my clients at every step of their purchase project, providing local expertise and helping them make informed choices that align with their aspirations and investment goals. The Algarve, with its richness and diversity, offers many opportunities and I’m here to help my clients take advantage of them.”
SERGE RODRIGUES
+351 934 291 929
Property Hunter in the Algarve
Choosing to live in the Algarve means choosing a fulfilling life under the sun, surrounded by stunning scenery and a welcoming community. The region offers a safe and high quality living environment, ideal for families, retirees and professionals seeking a balance between work and relaxation. With continued investment in infrastructure and a commitment to sustainability, the Algarve promises a prosperous future for its residents and investors.
Our buyer’s agents in the Algarve, experts in the local market, search, visit and discover exceptional properties throughout the southern region of Portugal. They are perfectly informed about the selling prices per square meter in this sector, they search and find the ideal property in Portugal for you, relying on a network of trust and the best technologies to find properties that meet your specifications and purchase goals (investment/residence).
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