The Algarve is well known for its lack of cheap homes, as 14 of its 16 municipalities have prices above the national average. But where are the cheapest areas to buy a house in the region?
This phenomenon of high property prices in the Algarve results from several factors, including the limited supply of homes for sale, the considerable increase in local accommodation in recent years and the popularity of the region as a destination for purchasing holiday homes.
In recent months, there has been an increase in housing prices, making purchasing a home one of the main concerns of the Portuguese. However, there are those who are currently considering investing in a house and, according to Novo Banco, the Algarve “could be an interesting option to make the most of your money in the long term”.
It is known that house prices vary according to the proximity or distance from the coast, and the existence of golf courses nearby can contribute to the increase in housing prices. Therefore, Loulé stands out as the Algarve municipality with the highest price per square metre. This area is known for being home to some of the most famous beaches in the Algarve, such as Quinta do Lago, Ancão and Vale do Lobo.
According to data from the National Statistics Institute (INE), only two municipalities in the Algarve have housing prices below the national median average of 1,611 euros/m2.
In Alcoutim, property is 795 euros/m2 and Monchique it is 1,057 euros/m2. Both are located inland, with no direct access to beaches, so in these areas it is possible to buy a 100m2 house for less than €110,000.
São Brás de Alportel is the third cheapest municipality for buying houses in the Algarve, with an average price of 1,843 euros per square metre. In 2023, 100m2 properties were selling for a median value of more than €180,000 in this area.
These three municipalities are where buying a house is most affordable in the Algarve region, however, none of them are among the list of 50 most popular municipalities to purchase property between October and December last year.
The three most expensive municipalities – Loulé (3,269 euros/m2), Lagos (3,182 euros/m2) and Vila do Bispo (3,162 euros/m2). In these areas, a 100m2 house was sold for a median value of more than €300,000. But these areas are also not among the most sought after areas to buy property.
Only eight of the 16 municipalities in the Algarve are among the most researched to purchase housing at the end of 2023.
Vila Real de Santo António was the most sought after, despite being in 24th position in the general ranking, with a median cost of 2,311 euros/ m2 during last year, according to INE.
The list of the most popular Algarve municipalities also includes Portimão, Silves, Albufeira, Tavira, Lagoa and Castro Marim, where the price of 100m2 houses varied between €215,000 and €283,000 last year.
Faro was the least sought after municipality of all, despite the cost of houses sold being in the middle of the Algarve table (2,315 euros/m2).
Source https://postal.pt/
