Persistence in the escalation of real estate values across Southern Portugal
Property Market in Southern Portugal: 2024 Overview
Welcome to the sizzling Southern Portugal property market in 2024! The region witnessed a robust surge in property prices, rental rates, and annual sales, showcasing a goldmine for property enthusiasts. But it's not all sunshine and sand; some variations among districts like Beja, Faro, Setúbal, and Portalegre have emerged, taking us on a tour of this Southern soiree.
Ups and Downs of the Southern Property Market
In 2024, Portugal's average property price jumped an impressive 13.7%, positioning it among the fastest-growing property markets globally, thanks to high demand, lifestyle appeal, favorable interest rates, and geopolitical factors encouraging stability [1]. Southern Portugal followed suit, witnessing an average price of around €259,000 in mid-2025, revealing a 18% increase compared to May 2024.
Dive deeper, and you'll discover that Faro, located in the Algarve, typically commanding higher prices due to its popularity as a coastal and tourist area, saw a notable year-on-year rise of over 11% for houses and nearly 19% for apartments [5]. The relatively less expensive districts of Beja, Setúbal, and Portalegre are picking up steam as potential investment hotspots, as buyers seek out value-for-money opportunities [1].
A Tale of Two Markets: To Rent or To Own
While specific rental price data by district is scarce, a pattern emerges—the rental markets are experiencing upward pressure, particularly in high-demand zones like Faro and Setúbal. The Algarve's reputation continues to lure investors, hinting at robust rental market fundamentals [4].
Breaking Tradition: Changing Deals
Property sales transactions across Portugal skyrocketed by 34.2% year-on-year, hitting 44,115 properties in Q4 2024 [4]. Although district-wise data is not publicly available, Southern Portugal experience a southern Portugal doing exceptionally well, benefiting from high buyer confidence and international investor inflows, indicative of a vibrant local market [3][4].
That being said, there are faint glimmers that the market could be approaching a plateau or correction, as transaction volume showed a slight decline in 2025 compared to the scorching prices [5].
A Leap of Faith: Investing in Southern Portugal
All in all, the property market in Southern Portugal in 2024 demonstrated rapid expansion in both prices and sales. Faro leads the charge, with Beja, Setúbal, and Portalegre rising as appealing alternatives for investors seeking value and future capital growth. Explore beyond the coast and discover the treasure trove that the heartland of Southern Portugal has to offer!
[1] Rosenberg, J. (2024). Portugal’s property market: Attracting global investment. Retrieved from https://www.reaction.global/portugal-property-market
[2] Santos, A. (2025). Property prices in Southern Portugal reveal robust growth: Current averages and year-on-year changes. Retrieved from https://www.propertyguides.co.uk/portugal/propertyguide/southern-portugal-property-prices
[3] The PortugueseNews. (2024). International investment flows into real estate surge in 2024. Retrieved from https://theportuguesenews.com/international-investment-flows-into-real-estate-surge-in-2024/
[4] Why Portugal. (2024). Quarter 4 Property Sales Figures for Portugal in 2024. Retrieved from https://whypor tunal.com/quarter-4-property-sales-figures-for-portugal-in-2024/
[5] Casas24. (2025). Housing Market Update: Q1 2025 Price Changes and Trends. Retrieved from https://casas24.pt/noticias/portal/2025/03/25/housing-market-update-q1-2025-price-changes-and-trends/
- The Southern Portugal housing market's robust growth in 2024 has attracted significant interest from international investors, making it a noteworthy news topic in global finance circles.
- The Portugal real-estate sector saw a surge inproperty prices, with southern districts like Beja, Setúbal, and Portalegre offering attractive investment opportunities due to their value-for-money properties.
- As the Southern Portugal real-estate market continues to attract investors, experts are keeping a close eye on the market trends, particularly rental rates, which have shown substantial increases in high-demand zones like Faro and Setúbal.
