Portimão, the second largest city in the Algarve, continues to stand out as one of the region’s most dynamic real estate markets. Combining modern infrastructure with a diverse property portfolio, the city attracts both local residents and investors, as well as tourists seeking a second home.
In recent years, property appreciation has been remarkable, reflecting the growing demand. The average price per square meter currently ranges between €2,600 and €3,200, with an impressive 11.8% increase over the past year. This growth is driven by tourism, quality of life, and urban redevelopment projects.
Different areas of the city offer distinct characteristics that shape property demand. Praia da Rocha, with its vibrant nightlife and one of the Algarve’s most stunning beaches, is the city’s tourism hub. Here, demand for luxury apartments and investment properties remains high. On the other hand, central areas of Portimão are predominantly residential, catering to families and professionals seeking accessibility and convenience in their daily lives.
In the neighbouring coastal areas, Alvor, Ferragudo and Estômbar retain their traditional charm despite increasing tourism. With average property prices ranging between €3,300 and €4,400 in Alvor and €4,300 to €4,800 around Ferragudo, these locations remain prime choices for those seeking exclusivity and tranquility. However, price growth in these areas has been more contained, with increases of just 0.4% and 0.2%, respectively.
Further inland, areas such as hilly Monchique and historic Silves appeal to those who value nature, serenity, and the Algarve’s authentic charm. These regions present a more stable market profile. Monchique’s property prices remained unchanged over the past year, while Silves recorded a slight 1% increase.
The future of the real estate sector in Portimão and its surroundings is promising, with several mid-range, high-end, and luxury developments planned for the coming years. This ongoing evolution reflects the region’s growing attractiveness, solidifying its position as one of the Algarve’s most sought-after markets.
Engel & Völkers Portimão is at the forefront of this expansion, offering exceptional service to those looking to buy, sell, or invest with confidence and security. You can find their office in the historical center, near the quay along the Arade River, at Praça Visconde Bívar.
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