What is the current situation with the cost of apartments and houses in the Algarve, the most attractive tourist region in continental Portugal? In this article, we will answer this question and briefly overview prices for various categories of real estate in the Algarve region in October 2022.
Why should you buy property in the Algarve?
If you've never been to Portugal, you've probably never heard about the southernmost region of the country's mainland, the Algarve. Yes, everyone has heard of Lisbon and Porto for a long time, but when someone asks me where it is best to relax on the beach in continental Portugal, I instantly recommend this region. The small Algarve region is empty of large cities with developed infrastructure. The administrative center of this region, Faro, is more like a small tourist village than a large city like Lisbon and Porto. Yes, here you won't find large companies, plants, and cultural life, but on the other hand, the Algarve has the most beautiful beaches, hotels, restaurants, and golf courses.
Since the 1960s, the Algarve has become a trendy resort and beach destination, especially among tourists from the UK, Germany, and many other European countries. Furthermore, many European retirees choose the Algarve for their retirement, and a lot of real estate in the region is owned by residents of northern European countries. In addition to picturesque places and many beaches, there is a network of golf courses. There are 34 international golf courses in the Algarve, and 5 of them are located in Vilamoura.
Faro, Lagos, Albufeira, Portimão, Tavira, and Vilamoura are the region's largest and most tourist cities. By the way, Vilamoura is the most luxurious and fashionable resort in Portugal. The prices in any cafe and restaurant here are several times higher than throughout Portugal, and you will be contacted only in English because Vilamoura is a Mecca for wealthy tourists, mainly from England.
Since this region is the southernmost in Portugal, the temperature here is the most comfortable in the entire continental part of the country. So, on the diagram below, you can see the average temperature in Faro by month (the red line on the graph means the average temperature, and the blue bars mean the humidity). The average annual temperature in Faro is 18 degrees, while in autumn, the thermometer mark rarely drops below 14-15 degrees.
In addition to favorable temperatures, the Algarve is famous for its comfortable conditions for a beach holiday in autumn. If in other regions of Portugal the water in the ocean is icy even in the summer, and the winds can be so strong that you can only be on the beach in a jacket even in August, then in the Algarve, the water warms up in autumn to quite comfortable temperatures and solid northern winds on the beaches are almost empty. That is why the Portuguese themselves come to the Algarve in August to relax on the beach, while many people in the region have their property, the so-called "summer houses" for relaxation. Less fortunate people will need to rent tourist accommodations or hotels, and prices in the region always increase during the season. So buying property in the Algarve can be an excellent investment if you want to rent out a house or apartment to tourists.
So, the main advantages of the Algarve region are:
- Comfortable climate, the most favorable throughout continental Portugal;
- Beautiful beaches and nature;
- Great potential for investment in tourist real estate;
- A high level of security and a slow tempo of life, which can be especially important for those who are looking for peace and are tired of the bustle of the city;
- Favorable geographical position: you can reach Lisbon or Spain in just a couple of hours, and there is also an international airport in Faro.
Do you want to buy property in the Algarve?
If you choose to buy a house or apartment in Portugal on your own, we recommend that you constantly scan current offers on the following most popular websites in the country for finding and selling real estate:
We will use these websites when analyzing the real estate market in Algarve, which you will get acquainted with in this article.
If you want to avoid delving into and understanding in detail the nuances of the Portuguese real estate market, then you can always simplify your life by contacting professional real estate agents in the Algarve, which you can find without leaving our WithPortugal website.
Real estate prices in the Algarve in October 2022
Regardless of whether you are looking for and buying property in Portugal on your own or with the help of a real estate agent. It is always important to understand the current market situation and price dynamics in a particular region of the country.
To understand what is currently happening with the price level for houses and apartments in the Algarve, let's use the highly convenient and understandable tool of the Idealista website. This tool allows us to track the dynamics of real estate prices and understand the average cost of 1 sq. meter in a particular city or region in Portugal.
Using this tool to analyze prices in the Algarve region, we see that in the autumn of 2022, the cost of one square meter is 2,899 euros in the region, while this value is +14.7% higher than it was in the autumn of last year.
As we can see in the graph above, the real estate prices in the Algarve have only grown over the past 5 years.
By the way, we can see on the graph that in January 2015, 1 sq. meter of real estate in the region cost a little more than 1,200 euros, and now, after 6 years, this price has more than doubled. This is the primary indicator that investments in the Algarve were relevant 5 years ago and now since the cost of houses and apartments in the region will only grow. Therefore, today, within the framework of this article, we will find the best options for buying a house or apartment in the Algarve location in the autumn of 2022.
Inexpensive property in the Algarve in autumn 2022
Let's start our search with the cheapest real estate options in the Algarve because, as you know, the price is a determining aspect for many people. Then, using the familiar tool of the Idealista website, we can compose a list of areas where real estate prices are the lowest. The picture below shows you the list of the most affordable cities and towns within the Algarve region in September 2022.
Let's go through this list and see what these cities offer us on websites for finding and selling real estate.
For example, starting from 10-40 thousand euros in the Alcoutim district, you can find many options for houses in condition of ruins for restoration, and starting from 40 thousand euros, there are good options. Although they need a significant overhaul, the walls and roof are in good condition.
In the picture below, you can see an example of such a house with an area of 63 m² and a cost of 38,000 euros.
At the same time, if you want to buy a house where you won't need to make significant repairs, you can find acceptable options starting from 70,000 euros. For example, in the picture below, you can see a small house in the same area, with 2 bedrooms and 1 hall, a house area of 56 m², and a cost of 70,000 euros. Yes, this house is small, but you can move into it only by doing some light repairs to update the space or not doing it at all.
Also, with a small budget, you can buy a modular (frame) house from 20,000 euros. In the picture below you can see an example of such a house that can be moved to another place, with 2 bedrooms and a cost of 23,000 euros. At the same time, such ads often don't include the price of a land plot but only houses because the developer means you will find and purchase the spot separately.
If we want to buy an Algarve house in excellent condition, already renovated and ready to move in, we will have to pay for it starting from 80-100 thousand euros. In the example below, you can see a small one-bedroom house with an area of 55 sq. meters, newly renovated, costing 82,500 euros.
If we want to buy not a house, but an apartment in the Algarve, then while searching on real estate websites, we will come across exciting ads with the heading "Compropriedade" (or with the inscription of shares ¼, ⅓, and so on), which, when translated from Portuguese literally means "shared ownership". According to the description of such ads, it can be understood that the same apartment is being sold to several people simultaneously, for example, to four people. In total, each owner receives 25% of the apartment, and an agreement is drawn between the owners, which indicates who and in what month has the right to live in the apartment. Honestly speaking, this is the first time I have come across such a system in a long time of property value reviews in Portugal, but apparently, the prices in the Algarve are so high that enterprising real estate agents came up with the idea of selling one property to several owners at once.
Well, let's look at an example of such an ad below. The picture below shows an apartment near Lagoa, Portimão, in a private luxury condominium with a garden, a swimming pool, two bedrooms, and an area of 134 sq. meters which costs 69,500 euros for 25% of this apartment. That is, you pay 70,000 euros, become one of the four owners of this apartment, and you can live in it for only 3 months a year. At the same time, the months change every year and are distributed so that each of the 4 owners can stay in the apartment for 1 month at different times of the year (that is, for example, during the first year, you can stay in the apartment in March, July, and November, in the second year February, June, October, etc.).
Such a proposal may seem absurd to some readers, but there are so many such ads on the websites that there is no doubt that such schemes are popular. People buy a third or a quarter of an apartment just because the prices for 1 sq. meter in the Algarve are so high that many people can only afford to buy a flat following the "Compropriedade" scheme.
If you want to be the sole owner of an apartment, then be prepared to pay at least 75,000 euros for a small studio apartment. The picture below shows an example of one of the cheapest studio apartments in October 2022 in the Algarve, with an area of 30 sq. meters, with a price of 75,000 euros. This apartment is located on the basement level of a hotel complex in Albufeira, and although the studio has no windows, you will have access to swimming pools, tennis courts, and other benefits of this complex.
The closer we move in our search to the Algarve coast, the higher the cost of real estate is, so we offer to consider the cost of apartments and houses directly on the Atlantic coast in the Algarve.
The cost of real estate on the coast of the Atlantic Ocean in the Algarve in autumn 2022
If you need to live directly on the ocean, then you need to consider not the Algarve region as a whole but only its coastal regions. We have already mentioned above that in this case, the prices for apartments and houses will be as high as possible, but on the other hand, real estate near the beach in the Algarve will be the best investment. Whether you live there on your own or rent an apartment or home for tourists. Let's analyze the current offers on the market to understand how much an apartment close to the beach in the Algarve can cost.
Searching within the Algarve region shows that various real estate options appear from 100,000 - 130,000 euros. Yes, these will be tiny houses and apartments not facing the beach, but it can be easily reached in a few minutes by car or about half an hour on foot. For example, in the picture below, we can see an example of a small studio apartment of 38 sq. meters costing 116,500 euros in the Albufeira area. Walking to the beach from this object takes about 15 minutes.
Considering as a permanent residence, such tiny houses and apartments are unlikely to be a good alternative, but if you are looking for housing for investment or want to have an apartment for your summer holidays, then the fact that the market is full of such offers at the moment can play into your hands.
If you want to live as close to the beach as possible, be prepared to pay at least 130,000 euros for a 1-bedroom apartment. Yes, in the picture below, we can see an apartment within 5 minutes walk from the famous beach in the town of Quarteira, with one bedroom and furniture, an area of 49 square meters, and a price of 138,500 euros.
If you are looking for an apartment with 2 bedrooms within a radius of 2 kilometers from the beach, then be prepared to pay at least 140-150 thousand euros for such housing. So, in the picture below, you can see an example of such an apartment with 2 bedrooms in Portimão. This object is located a few kilometers from the coastline and costs 139,000 euros.
Well, the Algarve impresses with its high prices, often exceeding even the cost of real estate in Lisbon. And this is not surprising because it is the country's southernmost and most tourist region.
Luxury housing in the Algarve region in autumn 2022
If the cost of real estate is not a determining aspect for you, then we can start analyzing the most expensive properties in the Algarve in autumn 2022. In addition to being of the highest quality, buying expensive real estate can also help you obtain a Golden Visa in Portugal.
Let's see what is currently the most expensive housing in this tourist region. With the help of the acquainted Idealista tool, we can compose the list of counties where real estate prices are the highest. The picture below shows you the list of the most expensive areas inside the Algarve.
Surprisingly, the region's highest price per square meter, 3,550 euros, doesn't apply to the center of the Algarve, Faro, but to the small town of Loulé, which is quite far from the coast. It is not the city of Loulé itself that is of particular interest, but its surroundings, where the most famous golf courses in the country are located.
The most expensive property currently in the Algarve is a luxury hotel with 80 apartments and 56 parking spaces. It is located on the oceanfront in Albufeira and costs 36,000,000 euros.
A fascinating object is a villa in the picture below. For 14,500,000 euros, we are offered to buy a house with 7 bedrooms and more than 2,000 meters of territory not far from Faro. The house is a modern custom-built project equipped with an elevator, solar panels, a swimming pool, and other attributes of premium real estate.
If you have a budget of about 1 million euros, you will also have many options. Most often, these will be villas with 3 or 4 bedrooms, with excellent repair, a swimming pool, etc. For example, below, you can see an example of a 4-bedroom villa with a pool in Quarteira. The house area is 184 sq. meters, the area of the adjacent territory is almost 900 sq. meters, and it costs precisely 1 million euros.
With a budget of 500,000 euros, apartments or houses with 2 or 3 bedrooms will already be available to you, with excellent renovation and a location close to the beach. In the example below, you can see a house with 3 bedrooms and an open terrace, with an area of 113 sq. meters and costing 500,000 euros. This house is located near the border of Portugal and Spain, which can also be an advantage for those who plan to often get out to a neighboring state. It is also interesting that this ad indicates that this facility is suitable for applying for a "Golden Visa in Portugal".
For about 250,000 euros, you will also find many offers of apartments with 1 or 2 bedrooms, many of which are under construction, and that can be a great investment. The picture below shows an example of an apartment right on the first line, near the border with Spain, with 1 bedroom, with an area of 53 sq. meters, and it costs precisely 250,000 euros.
How much money do you need to buy a home in the Algarve?
The answer to this question will depend only on your budget and preferences for the quality of housing, its location, etc. As part of this article, we conducted a brief overview of the Algarve region's real estate market and concluded that the cost of apartments and houses in this southern region exceeds even the cost of the most expensive real estate in Lisbon. And this is not surprising because this region is truly unique in terms of climate, location, and potential.
Real estate prices in the Algarve have doubled in the last 6 years and will definitely continue to grow in the future, so it is better not to wait for their further increase and buy a house or apartment in the Algarve as soon as possible. Even if you are not going to live in Portugal, it will be an excellent investment because the prices for objects in the region will only grow. After all, the warm and sunny Algarve region with the most beautiful beaches is so loved by wealthy tourists worldwide.
In case you want to enlist the support of real estate professionals, we recommend that you seek the help of our real estate agents in the Algarve, who will help with such an important and responsible matter as the purchase of real estate in Europe.
We wish you good luck choosing the right property, and we are waiting for you in Portugal!