Periodic text — data from the Instituto Nacional de Estatística (INE, local-level housing price statistics) covering Q1 2026. Next update scheduled upon the following quarterly release.

Key points

  • The median dwelling price in the Algarve reaches EUR 3,352/sqm in Q1 2026 — the country's second most expensive sub-region, behind Greater Lisbon.
  • Loulé confirms its premium status: above EUR 4,091/sqm median over the twelve months to end-March 2026.
  • Foreign buyers pay a median of EUR 4,003/sqm against EUR 3,214/sqm for domestic tax residents — a premium near 25% reflecting the segments and locations targeted.
  • Since 1 September 2026, non-resident IMT applies at the 7.5% flat rate on residential purchases: a parameter to read alongside prices — our dedicated text covers the mechanism and its refund routes.
  • The Loulé/rest-of-region gap is a reminder of granularity: the regional median only informs when paired with municipality, segment and condition.

The foreign premium: a statistical fact, not an anecdote

The median gap between foreign and domestic buyers (4,003 versus 3,214 EUR/sqm) does not measure "overcharging": it measures different baskets — golf, seafront, new against old, Loulé against the interior. For an investor the figure is an invitation to precision: the right question is not "what is the Algarve worth" but "what is this segment worth, in this municipality, this quarter".

Loulé, the market's head

The golden triangle — Quinta do Lago, Vale do Lobo, Almancil — pulls the municipality above EUR 4,091/sqm on a twelve-month median. This is fine-arbitrage territory: above that price level, transaction costs (non-resident IMT included) and resale depth matter more than the market's general direction.

What we watch for next quarter

Three watch-lines: the regional median holding above EUR 3,300/sqm, the measurable effect of the 7.5% IMT rate on second-half non-resident volumes, and the Loulé/region gap as a concentration gauge for the top of the market. These watch-lines also feed the study we are conducting on the Faro coastline — the report on this file sets out its scope and status. This text is updated at each INE quarterly release.

Periodic text anchored to the official data cited; figures reflect the quarter's INE release and may be revised at source. Every transaction calls for licensed advice.