House prices in the Algarve increased by 6% in the third quarter of 2018, according to the ‘Idealista’ real estate market report which states that the average price of housing in the region is €2,031 per m2.
The city of Faro registered a rise of 1.7%, with the price per square meter now at €1,706 but the steepest rise was in Vila Real de Santo António, up 11.4%, followed by Silves with a 7.8% gain and Olhão up 6.6%.
The most expensive municipality house is Loulé where the average paid per square metre is €2,430 compared to the cheapest municipalities of Silves, at €1,499, Olhão at €1,301 and São Brás de Alportel at €1,233.
Housing across Portugal increased by 6.4% during the same period with an average selling price of €1,867 per square metre. All regions saw price rises in the quarter, even in the north where growth was logged at 8%.
The Lisbon and Algarve regions grew 5.9%, the Alentejo was up 4.2%, and the central region and Madeira were up 3.5%.
The ranking of the most expensive districts continues to be led by Lisbon at €3,067 per square metre, followed by Faro at €1,916 and Porto at €1,649.
This is not empirical data as it is based on advertised real estate prices for 71,572 properties on Idealista’s database - but it’s a fair enough indication.
Although house prices are out of reach of most Portuguese families, they are still below the European average of €6,157 euros per square metre, according to the estate agents’ association, APEMIP.
In the 38 european countries analyzed, Portugal ranks 19th with an average price of €3,830 euros per square meter, based on figures from the real estate portal, International Property Guide.
Luís Lima, president of the association said that, "Portuguese real estate still has potential for appreciation if foreign investment is properly routed out of large cities."
In a time when international investment is one of the main drivers of this increase in house prices, although there is a general and negative populism about this type of buyer, the truth is that it creates wealth, employment and new economic dynamics that are essential, for example, in the interior of the country."
"This trend will continue, with no prospect of price falls," said Lima.