Housing sold in the Algarve reached a median price of €3,352 per square metre in the first quarter of 2026. That makes the Algarve the second most expensive of Portugal’s 26 sub-regions, behind Greater Lisbon at €3,836/m². Nationally, prices rose 19.8% on the same quarter a year earlier. Every figure in this article comes from INE, Portugal’s national statistics institute, whose housing data is drawn from the tax records of completed sales rather than from asking prices. The most recent release covers the first quarter of 2026 and was published on 17 July.
One number in that release deserves as much attention as the price. Transactions fell 10.5% year on year. Fewer homes are changing hands, and the ones that do are changing hands for more. What follows is the state of the Algarve market in 2026: what you can expect to pay, how fast prices are moving, what international buyers pay compared with residents, and how far the figures stretch across the region.
Key takeaways
- The Algarve’s median housing price was €3,352/m² in Q1 2026, second only to Greater Lisbon.
- Portugal’s median rose 19.8% year on year in Q1 2026, while transactions fell 10.5%.
- Foreign-resident buyers in the Algarve paid a median €4,003/m², against €3,214/m² for Portugal-resident buyers.
- Loulé is Portugal’s fourth most expensive municipality at €4,091/m², one of only four above €4,000.
- 14 of the Algarve’s 16 municipalities price above the national median, with over €2,000/m² between them.
How much does Algarve property cost in 2026?
The median price across all housing sold in the Algarve was €3,352 per square metre in the first quarter of 2026. The figure covers everything from an inland village house that needs work to a new apartment near a marina, so read it as a midpoint rather than a quote for any particular property.
The national median in the same quarter was €2,337/m². The Algarve therefore carries roughly a 43% premium over the country as a whole.
| Region | Median price, Q1 2026 |
| Greater Lisbon | €3,836/m² |
| Algarve | €3,352/m² |
| Setúbal Peninsula | €2,996/m² |
| Portugal (national) | €2,337/m² |
At the regional median, a 120 m² three-bedroom home works out to roughly €402,000. Municipal figures matter more than that headline, and the section below explains why.
How fast are Algarve property prices rising?
Quickly, and faster than they were. The national median rose 19.8% year on year in the first quarter of 2026, up from 17.5% the previous quarter, and gained 6.3% over the final quarter of 2025 alone. All 26 sub-regions posted annual increases. The Algarve was not the fastest: Lezíria do Tejo led at 30.4%, and the Setúbal Peninsula rose 28.9%.
The volume figures tell the other half. Portugal recorded 35,953 housing transactions in the first quarter of 2026, against 40,163 in the same quarter of 2025, a fall of 10.5%. That count is arguably the more telling number. Prices reflect what sold; the volume figure hints at how little was available to sell.
For the longer arc of the regional market, see our guide to navigating the Algarve property market.
Do foreign buyers pay more in the Algarve?
Yes, and the gap is measured directly. In the first quarter of 2026, buyers with a tax domicile outside Portugal paid a median €4,003/m² in the Algarve, against €3,214/m² for buyers domiciled in Portugal. That is a difference of about 25%.
| Area | Foreign-resident buyers | Portugal-resident buyers |
| Algarve | €4,003/m² | €3,214/m² |
| Greater Lisbon | €5,118/m² | €3,805/m² |
| Portugal | €3,000/m² | €2,313/m² |
The gap is not evidence of systematic overcharging. It largely reflects what international buyers choose: newer properties in coastal municipalities, in exactly the places where prices run highest. The Algarve’s 25% difference is also narrower than Greater Lisbon’s, where the same measure shows 34.5%.
Part of the gap is negotiable. In Algarve Buyer’s Agent transaction record shows clients typically saving 6 to 10% through
negotiation, which on a €4,000/m² purchase is real money per square metre.
That is the core argument for independent representation, which we set out in why international buyers need a buyer’s agent in Portugal.
Which Algarve areas cost the most?
Loulé, by a clear margin. Over the 12 months to March 2026 the Loulé median stood at €4,091/m². Only three municipalities in the whole country price higher: Lisbon (€5,082/m²), Cascais (€4,687/m²) and Oeiras (€4,297/m²). Loulé covers Quinta do Lago, Vale do Lobo and Vilamoura, which is most of what buyers mean when they say the golden triangle.
The region is far from uniform. 14 of the Algarve’s 16 municipalities price above the national median, and the gap between the region’s most and least expensive municipality exceeds €2,000/m². The Algarve, Greater Lisbon and the Porto metropolitan area are the only three sub-regions in Portugal with an internal spread that wide.
In practice, a budget that buys 80 m² in one municipality buys well over twice the floor area in another, an hour’s drive away. Before choosing on price alone, check drive times to Faro airport and what stays open through winter. Our Quinta do Lago area guide sets out what the top of that range buys.
Where is the market heading?
The data describes the recent past, and any honest answer starts there. The first quarter of 2026 shows prices accelerating, from 17.5% annual growth to 19.8%, while the number of sales contracts. Every one of Portugal’s 26 sub-regions rose. Nothing in the figures points to a market that has cooled.
These statistics are published quarterly. The next release is scheduled for 23 October 2026 and will cover the second quarter, so any figure you read before then, including the ones here, describes the market as it stood in March. If you are weighing the Algarve against other regions, our Why Algarve page makes the case with the same data-first approach.
Before you set a budget
A regional median tells you what the market did. It does not tell you what a specific villa should cost this autumn, or whether the asking price on your shortlist carries 10% of margin. If you want these numbers read against your own budget and shortlist, book a free 45-minute consultation.
Frequently asked questions
How much does a house cost in the Algarve in 2026?
The regional median was €3,352 per square metre in the first quarter of 2026. A 120 m² home at that median costs roughly €402,000. Prices vary widely by municipality: Loulé runs above €4,000/m², while the gap between the Algarve’s most and least expensive municipalities exceeds €2,000/m².
Are Algarve property prices still rising?
Yes. Portugal’s median housing price rose 19.8% year on year in the first quarter of 2026, up from 17.5% the previous quarter, and 6.3% over the final quarter of 2025 alone. All 26 Portuguese sub-regions recorded annual increases. Transaction volumes moved the other way, falling 10.5% against the same quarter in 2025.
Is the Algarve more expensive than Lisbon?
No. Greater Lisbon’s median was €3,836/m² in the first quarter of 2026 against the Algarve’s €3,352/m², so the Algarve is Portugal’s second most expensive sub-region. At municipal level the picture narrows: Loulé, at €4,091/m² over the year to March 2026, ranks fourth nationally behind Lisbon, Cascais and Oeiras.
Do foreigners pay more for property in Portugal?
On average, yes. In the first quarter of 2026, buyers with a foreign tax domicile paid a median €4,003/m² in the Algarve against €3,214/m² for Portugal-domiciled buyers, a gap of roughly 25%. The difference mostly reflects the newer, coastal properties international buyers choose. Negotiation can recover part of it.
Which is the most expensive municipality in the Algarve?
Loulé, at a median €4,091/m² over the 12 months to March 2026. It is the fourth most expensive municipality in Portugal and the only one outside the Lisbon area above €4,000/m². Loulé includes Quinta do Lago, Vale do Lobo and Vilamoura, the region’s established prime resort areas.
How current is this data?
These figures come from INE’s local housing price statistics for the first quarter of 2026, published on 17 July 2026. They are drawn from tax records of completed transactions, not asking prices. INE’s next quarterly release is scheduled for 23 October 2026 and will cover the second quarter of 2026.
