Faro · Loulé · Albufeira · Portimão · Lagos · Tavira · Silves · Lagoa
Last updated: 16/04/2026, 19:42:19
Typical costs on a €300,000 Algarve property
| Cost Item | Estimate |
|---|---|
| Stamp Duty (IMT) — habitação própria permanente | €4,268 |
| Notary & Land Registry | €700 |
| Agency Commission (4%) | €12,000 |
| Legal / Lawyer | €1,500 |
| Mortgage Arrangement (1%) | €2,400 |
| IMI (year 1 estimate) | €900 |
| Total Acquisition Cost | ~€21,768 |
| ≈ 7.3% on top of purchase price. Excludes mortgage interest. | |
The Algarve residential market remains one of the most dynamic in Portugal. House prices continued their upward trajectory in 2024. Albufeira and Loulé command the highest per-m² prices due to tourism density and limited supply, while Tavira and Portimão offer comparatively higher rental yields with more accessible entry points. New construction activity is most active in Loulé and Lagoa municipalities, indicating supply-side responses to demand pressures. The decline in transaction volumes (-9.4%) reflects a market normalisation after 2022's record activity. Short-term rental vacancy remains below 3% in tourist-heavy zones (Albufeira, Lagos), keeping rental yields attractive for buy-to-let investors. Key risks: mortgage rate environment, seasonal demand concentration, and potential short-term rental regulatory changes.