House sales prices in the Algarve increased by 13.8% in 2024, according to the year-on-year rate of change of Confidencial Imobiliário's Residential Price Index for the 4th quarter of the year.

The region thus recorded a price growth higher than the country's average, which was 11.0% in the same period, as well as 5.5% for Lisbon and 7.8% Porto.

The interest in the Algarve accelerated compared to 2023, when it reached 9.2%, with the region bucking both the national trend and that of Lisbon and Porto, where the pace of increase in 2024 was lower. In 2023, house prices rose by 11.8% nationally, 6.3% in Lisbon and 10.7% in Porto, rates higher than those recorded by the respective markets in 2024.

The behaviour of prices in the Algarve aggregate reflects the performance of most markets in the region, where 13 of the 16 municipalities recorded an acceleration in interest.

The most expensive markets, such as Loulé, Tavira and Lagos, reached increases of 12.6%, 12.8% and 18.6% in 2024, respectively, as well as Faro, with 11.5%.

Vila Real de Santo António recorded the highest price increase in the Algarve in 2024, with a growth of 26.0%.

Despite this prevailing trend, in three municipalities in the Algarve, price increases lost traction compared to 2023 and, among these, two of the most important residential markets in the region are included, namely Albufeira and Portimão. In Albufeira, prices slowed down, even entering negative territory, with a variation of -0.6% in 2024, while in Portimão, the deceleration resulted in an increase of only 4.7%. The other market with a softening of appreciation was Silves, where prices still increased by 10.8% in 2024.

According to the SIR- Residential Information System, the average sale prices of housing in the Algarve reached €2,966/m2 in 2024. Loulé has consolidated itself as the most expensive market, with sales at €4,138/m2 in 2024, when all others transacted below €3,500/m2. Lagos set prices at €3,460/m2, Albufeira at €2,909/m2, Faro at €2,685/m2 and Portimão at €2,630/m2.

Despite the behavior of prices, the region maintained sales in line with 2023, with an estimated 11,100 transactions in 2024. This volume reflects an annual variation of -2.5%, contrary to the national trend, in Lisbon and Porto, where sales increased compared to 2023.