Source figures are in euros and m². Display conversions are estimates; percentage changes retain their source-currency basis.
In this report
At a Glance
Reading Time
11 minutes
Who This Report Is For
Americans buying, selling or comparing locations in Portugal.
You’ll Learn
- Loulé had the highest average total sale price and €/m²: €823,174 and €6,046/m².
- Four-quarter unit sales totals fell in Lagos, Loulé, Faro and Tavira, with declines ranging from 4.6% to 12.8%.
- Faro showed longer marketing and wider final discounts; Lagos showed shorter marketing and narrower discounts despite substantially more supply.
Key Takeaway
Unit sales remained lower across Lagos, Loulé, Faro and Tavira, with substantial differences in prices and selling conditions.
Slower unit sales did not produce one Algarve price or selling pattern
All four municipalities recorded fewer unit sales than a year earlier, and the slowdown also appears in their four-quarter totals. Price and selling conditions were much less uniform. Faro’s average €/m² fell slightly, while Loulé and Tavira recorded substantial increases. Lagos combined sharply higher supply with faster marketing and smaller final discounts.
The longer history adds perspective to the large price movements. Loulé’s annual €/m² growth eased from 58.7% in Q1 to 26.7% in Q3. Faro moved from 26.3% to −1.1%. Lagos and Tavira rebounded from much lower Q2 annual growth rates. This is not a single, steadily progressing regional cycle.
Property mix remains an important unresolved influence, particularly where aggregate and narrower segment movements diverge. A higher average purchase price is not evidence that every home has gained the same amount.
What did homes sell for
The total-budget ranking was Loulé, Tavira, Faro and Lagos. The €/m² ranking was Loulé, Lagos, Tavira and Faro. Lagos therefore had the lowest average total transaction value of the four while recording the second-highest price per metre.
Average transacted area helps put those positions in context: 94 m² in Lagos, 130 m² in Loulé, 155 m² in Faro and 143 m² in Tavira. These averages combine different locations, property types and conditions. They cannot be treated as quotations for an equivalent home in four places.
Swipe the table to compare all columns →
| Municipality | Average total sale price | Average €/m² | Average property size |
|---|---|---|---|
| Lagos | €432,833 | €4,178 | 94 m² |
| Loulé | €823,174 | €6,046 | 130 m² |
| Faro | €459,352 | €3,182 | 155 m² |
| Tavira | €488,077 | €3,875 | 143 m² |
| Measure | Lagos | Loulé | Faro | Tavira |
|---|---|---|---|---|
| Average total sale price | €432,833 | €823,174 | €459,352 | €488,077 |
| Average €/m² | €4,178 | €6,046 | €3,182 | €3,875 |
| Average property size | 94 m² | 130 m² | 155 m² | 143 m² |
Source: Confidencial Imobiliário, SIR — Residential Information System. AGTP analysis. © IMOESTATISTICA – TODOS OS DIREITOS RESERVADOS.
How have prices changed
Loulé’s average total value rose 41.7% from Q2 and its €/m² rose 15.0%; average area increased from 107 to 130 m². Tavira’s total value rose 55.0%, €/m² 26.8% and area from 101 to 143 m². The changes are large, but they are not evidence that every home gained those percentages in three months.
Faro’s annual comparison is equally instructive: total value rose 24.2%, but €/m² fell 1.1%. Its average area rose from 122 to 155 m². Lagos recorded €/m² growth of 11.1% year over year, but only a 1.7% increase in total value alongside smaller average properties.
Read both price measures and the corresponding property profile before deciding what the quarter means for a particular search.
Swipe the table to compare all columns →
| Municipality | Total sale price vs Q2 | Total sale price vs Q3 2025 | €/m² vs Q2 | €/m² vs Q3 2025 |
|---|---|---|---|---|
| Lagos | +13.9% | +1.7% | +2.9% | +11.1% |
| Loulé | +41.7% | +32.1% | +15.0% | +26.7% |
| Faro | +19.0% | +24.2% | -0.6% | -1.1% |
| Tavira | +55.0% | +44.9% | +26.8% | +16.2% |
| Measure | Lagos | Loulé | Faro | Tavira |
|---|---|---|---|---|
| Total sale price vs Q2 | +13.9% | +41.7% | +19.0% | +55.0% |
| Total sale price vs Q3 2025 | +1.7% | +32.1% | +24.2% | +44.9% |
| €/m² vs Q2 | +2.9% | +15.0% | -0.6% | +26.8% |
| €/m² vs Q3 2025 | +11.1% | +26.7% | -1.1% | +16.2% |
Source: Confidencial Imobiliário, SIR — Residential Information System. AGTP analysis. © IMOESTATISTICA – TODOS OS DIREITOS RESERVADOS.
The longer view
Swipe the table to compare all columns →
| Municipality | Unit sales over 4 quarters | €/m² annual change Q1 | Q2 | Q3 |
|---|---|---|---|---|
| Lagos | -10.1% | +23.6% | +2.5% | +11.1% |
| Loulé | -4.6% | +58.7% | +35.7% | +26.7% |
| Faro | -8.0% | +26.3% | +4.4% | -1.1% |
| Tavira | -12.8% | +8.7% | +0.4% | +16.2% |
| Measure | Lagos | Loulé | Faro | Tavira |
|---|---|---|---|---|
| Unit sales over 4 quarters | -10.1% | -4.6% | -8.0% | -12.8% |
| €/m² annual change Q1 | +23.6% | +58.7% | +26.3% | +8.7% |
| Q2 | +2.5% | +35.7% | +4.4% | +0.4% |
| Q3 | +11.1% | +26.7% | -1.1% | +16.2% |
Four-quarter unit sales compare Q4 2025–Q3 2026 with Q4 2024–Q3 2025. Price columns show each quarter’s change from the same quarter a year earlier; they are not quarterly growth rates.
Source: Confidencial Imobiliário, SIR — Residential Information System. AGTP analysis. © IMOESTATISTICA – TODOS OS DIREITOS RESERVADOS.
Unit sales activity and available supply
The annual unit sales decline has lasted five consecutive quarters in Lagos, three in Loulé and Faro, and four in Tavira. Four-quarter unit sales totals were down 10.1%, 4.6%, 8.0% and 12.8%, respectively. This makes the slowdown more persistent than the latest quarter alone suggests.
Supply rose from Q2 in all four. Compared with Q3 last year, it was 36.8% higher in Lagos, 1.3% higher in Loulé and 12.8% higher in Tavira, but 6.6% lower in Faro. Those stock changes do not isolate demand: listings can enter, sell or be withdrawn.
New properties made up 77.5% of Lagos’s offered supply, 55.6% of Loulé’s, 58.9% of Faro’s and 66.6% of Tavira’s. Their shares of estimated unit sales were lower, particularly in Lagos at 7.2%. Offered supply can include projects in planning and construction; these figures do not establish how many completed homes are waiting for buyers or whether developers are under pressure.
Swipe the table to compare all columns →
| Municipality | Estimated unit sales | Unit sales vs Q3 2025 | Homes offered | Supply vs Q2 | Supply vs Q3 2025 |
|---|---|---|---|---|---|
| Lagos | 209 | -11.1% | 1,539 | +32.9% | +36.8% |
| Loulé | 464 | -9.2% | 3,345 | +20.2% | +1.3% |
| Faro | 178 | -18.0% | 1,078 | +11.4% | -6.6% |
| Tavira | 194 | -19.5% | 1,223 | +22.7% | +12.8% |
| Measure | Lagos | Loulé | Faro | Tavira |
|---|---|---|---|---|
| Estimated unit sales | 209 | 464 | 178 | 194 |
| Unit sales vs Q3 2025 | -11.1% | -9.2% | -18.0% | -19.5% |
| Homes offered | 1,539 | 3,345 | 1,078 | 1,223 |
| Supply vs Q2 | +32.9% | +20.2% | +11.4% | +22.7% |
| Supply vs Q3 2025 | +36.8% | +1.3% | -6.6% | +12.8% |
Source: Confidencial Imobiliário, SIR — Residential Information System. AGTP analysis. © IMOESTATISTICA – TODOS OS DIREITOS RESERVADOS.
Lagos
Used apartments averaged €4,190/m², 13.2% above Q3 last year, and €400,409 per transaction. Their average marketing time was seven months and final discount 4.0%.
The substantial new-property share of offered supply sits beside unavailable Q3 new-apartment price statistics. Several house metrics are also unavailable. We can describe the broad supply composition and observed resale-apartment results, but cannot establish a reliable new-versus-used price comparison from this quarter.
For buyers, “more choice in Lagos” needs a follow-up question: more choice in which property type, at what stage of completion and within which total budget?
The used-bedroom categories were mixed: T2 average €/m² rose 13.6% annually, while T3 fell 5.7%. Lagos’s broader price increase should not be applied uniformly across apartment sizes.
Loulé
Houses overall averaged €1,073,200 and €6,530/m². Their average €/m² was 54.3% above Q2, while used-apartment €/m² rose 15.8% and new-apartment €/m² fell 4.3%. The municipal increase consequently sits alongside very different segment movements.
New apartments averaged €866,058 and 18 months from listing to transaction, compared with €499,365 and seven months for used apartments. Their final discounts were 2.4% and 5.6%. Houses overall had a 7.0% final discount.
Loulé’s municipal geography and housing mix are too broad for one average to value a specific home. The sharp quarterly house movement deserves a property-specific comparison rather than a claim of uniform appreciation.
Used T2 average €/m² was only 1.5% above last year, compared with the municipal increase of 26.7%. This gap makes the mix of locations and properties a particularly important unresolved influence. A comparable used T3 annual change is unavailable.
Faro
Faro’s eleven-month municipal marketing time conceals a much shorter used-apartment timeline. Used apartments averaged four months, €289,138 and a 4.0% final discount. Houses overall averaged fourteen months, €747,500 and an 11.8% final discount.
Average house area was 264 m², versus 98 m² for used apartments. The mix of properties sold matters when interpreting the higher municipal total transaction value.
New-apartment price metrics are unavailable for Q3. Faro’s municipal €/m² decline cannot be applied mechanically to its resale apartments, whose average €/m² was 3.0% above last year.
Used T2 average €/m² fell 1.4% annually, contrasting with the 3.0% increase for used apartments overall. That is another reason to keep the purchase comparison specific to size and property profile.
Tavira
Used-apartment €/m² rose 31.8% from Q2 and 31.2% from Q3 last year, to €4,116. New apartments averaged €3,903/m², up 9.4% quarterly but only 0.6% annually. New and used apartments therefore occupied different positions, and being new did not automatically imply a higher average €/m².
Houses overall averaged €651,849 and fifteen months from listing to transaction. Used apartments averaged €374,000 and five months. House final discounts were 7.8%, compared with 3.3% for used apartments.
The large increase in Tavira’s total transaction average comes with a larger average property profile and divergent segment changes. It is a signal worth investigating, not a valuation rule for every property in the municipality.
Used T3 average €/m² rose 45.1% annually; a comparable used T2 change is unavailable. The increase is visible within one narrower category, but location and quality differences can still affect it. It is not a controlled appreciation rate.
Marketing time and negotiation
Compared with Q3 2025, Lagos’s marketing time shortened from ten to seven months and its final discount narrowed from 6.1% to 4.2%. That limits the argument that higher supply has uniformly weakened sellers’ positions.
Faro moved in the other direction: marketing lengthened from seven to eleven months and final discounts widened from 4.5% to 6.5%. Loulé remained at nine months but its discount widened from 4.2% to 5.7%. Tavira lengthened from eight to nine months, while its final discount narrowed from 5.7% to 5.1%.
The municipality and property type both matter. These are averages for completed transactions; longer new-project marketing also needs to be understood in the context of development and contract stages.
Swipe the table to compare all columns →
| Municipality | Listing to transaction | Final discount | Accumulated discount |
|---|---|---|---|
| Lagos | 7 months | 4.2% | 7.8% |
| Loulé | 9 months | 5.7% | 8.2% |
| Faro | 11 months | 6.5% | 9.5% |
| Tavira | 9 months | 5.1% | 7.4% |
| Measure | Lagos | Loulé | Faro | Tavira |
|---|---|---|---|---|
| Listing to transaction | 7 months | 9 months | 11 months | 9 months |
| Final discount | 4.2% | 5.7% | 6.5% | 5.1% |
| Accumulated discount | 7.8% | 8.2% | 9.5% | 7.4% |
Source: Confidencial Imobiliário, SIR — Residential Information System. AGTP analysis. © IMOESTATISTICA – TODOS OS DIREITOS RESERVADOS.
Mortgage demand in context
Banco de Portugal’s July 2026 survey reported slightly weaker housing-loan demand in Q2. This national assessment is not an application count or evidence of the cause of this region’s Q3 unit sales changes.
What this means for buyers
Compare completed resale homes separately from projects under construction or planning. Establish when occupation is possible, what is included in the price and which contractual milestones govern the purchase.
When moving between apartments and houses, compare total budgets as well as €/m². The municipal averages show how easily the ranking changes when property size enters the picture.
What this means for sellers
The larger transaction averages in Loulé and Tavira should not become an automatic asking-price increase. A different mix of properties may have sold, and the segment results did not all move in the same direction.
Use recent evidence relevant to the property’s location, type, size and condition. House sellers in Faro and Tavira should also examine the longer observed marketing timelines and larger discounts before setting their pricing and timing expectations.
Michael’s Perspective
I would be cautious about describing the Algarve with one market label. The same quarter brought more supply but faster selling in Lagos, and a longer selling timeline with wider discounts in Faro.
For someone considering a purchase here, the practical comparison starts with the municipality, then the type of home and whether it is completed or still a project. The large price changes in some averages are a reason to investigate the homes behind them, rather than assume the same movement applies to the property in front of us.
Methodology and sources
This report uses Q3 2026 municipality-level statistics from Confidencial Imobiliário’s SIR — Sistema de Informação Residencial. The quarter ended September 30, 2026, and AGTP reviewed the uploaded files and extended history on October 15. Municipal tables combine all residential property types and new or used conditions; segment sections identify narrower filters.
Prices are averages, not medians. €/m² uses gross private area, or área bruta privativa, which is not necessarily equivalent to American interior living area. Estimated transactions are CI’s market-activity estimates, not the raw sample supporting every price statistic.
The extended history spans Q1 2024–Q3 2026. Four-quarter unit sales changes compare Q4 2025–Q3 2026 with Q4 2024–Q3 2025. Historical editions can have different revision status; full comparability of release status has not been established. Quarterly changes compare Q3 with Q2 2026. Annual changes compare Q3 2026 with Q3 2025. Both describe changes in aggregate averages and can reflect property mix. They are not controlled measures of appreciation, and quarterly changes are not seasonally adjusted. Unavailable segment figures have not been estimated.
Listing-to-transaction time measures marketing months, with the transaction assigned to the CPCV when one exists or the deed otherwise. It is not months of inventory or necessarily the time to final deed. New properties can include certain recent resales and homes sold during planning or construction.
Final discount compares the completed sale with the last asking price; accumulated discount compares it with the original asking price. Percentages are presented as reduction magnitudes. Neither is an automatic offer recommendation.
Data status: Preliminary. Figures remain subject to revision with the Q4 dissemination. Updated selling-price treatment (PVA) has not been independently confirmed for these Q3 files. Quarter-over-quarter comparisons use the current Q2 2026 workbook in AGTP’s Google Drive as the authoritative baseline. Year-over-year comparisons use the Q3 2025 workbook. All six Q3 reports use the same source tables and definitions.
Read How We Analyze Portugal’s Real Estate Market for definitions and limitations. AGTP is responsible for the selection, calculations and interpretation; CI/Imoestatística supplies the underlying statistics.
Source: Confidencial Imobiliário, SIR — Residential Information System. AGTP analysis. © IMOESTATISTICA – TODOS OS DIREITOS RESERVADOS.
Continue exploring
Compare markets · Market Intelligence · Historical market reports
Comparing actual properties?
The relevant comparison starts with the home, your budget and the life you want here.
Photography credits
Photo by Richard James on Unsplash, used under the Unsplash License. Cropped responsively for this report.