House Prices on the Rise in The Algarve

Introduction

House prices in Portugal continue to rise in 2024, with almost all major cities experiencing an increase. This trend highlights the ongoing housing affordability problem in the country. In the second quarter of the year, house prices rose by 2.8% compared to the previous quarter, setting the median cost of housing at 2,683 euros per square meter by the end of June.

Price Increases Across Cities

This upward trend is evident across nearly the entire Portuguese territory. Between April and June, house prices increased in 18 district capitals, with Ponta Delgada leading the rise at 8%. Other notable increases include Viseu (5.6%), Bragança (4.7%), and Santarém (4.5%). Lisbon and Porto also saw price hikes, albeit at a slower rate of 1.3% and 0.9%, respectively. On an annual basis, house prices in the country rose by 7%.

Leading Cities in Price Increases

Among the 19 district capitals analyzed house prices rose in 18 cities. The most significant increases were observed in:

• Ponta Delgada: 8%
• Viseu: 5.6%
• Bragança: 4.7%
• Santarém: 4.5%
• Leiria: 4.5%
• Setúbal: 3.9%
• Funchal: 3.9%
• Beja: 3.9%
• Guarda: 3.8%
• Évora: 3.5%

Minor Increases and Decreases

Other cities experienced more modest increases:

• Faro: 1.8%
• Aveiro: 1.5%
• Castelo Branco: 1.4%
• Lisbon: 1.3%
• Porto: 0.9%
• Vila Real: 0.8%
• Portalegre: 0.6%
• Coimbra: 0.6%

Conversely, Viana do Castelo was the only district capital where house prices fell, with a decrease of 4.3% in the second quarter.

Most Expensive Cities

Lisbon remains the most expensive city to buy a house, with prices averaging 5,642 euros per square meter. Porto and Funchal follow, with prices of 3,578 euros/m2 and 3,388 euros/m2, respectively. Other high-cost cities include Faro (2,979 euros/m2) and Aveiro (2,534 euros/m2).

Most Affordable Cities

On the other end of the spectrum, the most economical cities to buy a house are:

• Guarda: 802 euros/m2
• Portalegre: 805 euros/m2
• Castelo Branco: 908 euros/m2
• Beja: 944 euros/m2
• Bragança: 975 euros/m2

Regional Price Analysis

When analyzing by districts and islands, the biggest increases in house prices were observed in:

• Braga: 9.1%
• São Miguel Island: 8.4%
• Pico Island: 6.1%
• Madeira Island: 4.8%
• Terceira Island: 4.3%
• Castelo Branco: 4.2%
• Santarém: 3.1%
• Setúbal: 3.1%
• Porto: 2.9%
• Viseu: 2.5%
• São Jorge Island: 2.5%
• Évora: 2.3%
• Lisbon: 2.2%
• Portalegre: 2.1%

Smaller Increases

Regions with price increases of less than 2% include:

• Leira: 1.7%
• Faro: 1.6%
• Beja: 1.3%
• Aveiro: 1.3%
• Vila Real: 1.1%

Decreases in Prices

House prices became cheaper in four territories:

• Viana do Castelo: -3.8%
• Guarda: -3.6%
• Faial Island: -2.9%
• Porto Santo Island: -1.2%

In Bragança, Santa Maria Island, and Coimbra, prices remained relatively stable.

Most Expensive Districts

The ranking of the most expensive districts to buy a house is led by:

• Lisbon: 4,096 euros/m2
• Faro: 3,373 euros/m2
• Madeira Island: 3,107 euros/m2
• Porto: 2,656 euros/m2
• Setúbal: 2,548 euros/m2

Most Affordable Districts

The most economical prices to purchase a home are found in:

• Guarda: 683 euros/m2
• Portalegre: 733 euros/m2
• Castelo Branco: 867 euros/m2
• Bragança: 880 euros/m2
• Vila Real: 983 euros/m2
• Beja: 1,085 euros/m2
• Viseu: 1,121 euros/m2

Conclusion

House prices in Portugal continue to rise, reflecting a broader trend seen across most major cities and regions. This ongoing increase, albeit at varying rates, underscores the persistent challenge of housing affordability in the country. While some areas have seen slight decreases or stable prices, the general trajectory points towards a more expensive housing market in Portugal.