Southern Portugal Property Prices Surge 20% Annually, Imovirtual Data Reveals
A new statistical analysis released by the property portal Imovirtual confirms a significant upward trend in house prices in the southern region of Portugal. The report, which compares market data from July 2025 with the previous month and the corresponding period in 2024, indicates an average annual price increase of 20% for property sales in the region, bringing the average value to €517,000. This growth is slightly above the national average increase of 19%.
The data was compiled using thousands of listings advertised on the Imovirtual platform, employing a methodology that calculates the average price of properties listed for sale and rent across all districts in southern Portugal. The findings provide a granular view of the market's behavior, highlighting key differences between districts. The most significant year-over-year appreciation was recorded in the district of Beja, where the average sale price increased by 37% to €195,000. This substantial growth points to increasing demand in Portugal's inland areas.
In terms of absolute value, the district of Faro, which includes the Algarve, remains the most expensive in the south, with an average sale price of €550,000. This figure represents a 22% increase compared to July 2024 and a 3% rise from the previous month. The Setúbal district also showed continued growth, with a 14% annual increase pushing the average price to €445,000. Meanwhile, Évora’s market stabilized at an average of €275,000, a 25% year-over-year increase, and Portalegre remained the most affordable district at €120,000, despite a 20% annual rise.
The rental market in the south presents a more complex picture. The average rental price in the region was €944, a 5% increase from the previous year. Faro also leads in this segment, with an average rent of €1,400, marking a 17% annual increase. Setúbal’s rental prices grew by a modest 2% to €1,220. In contrast, Beja saw a significant 20% decrease in average rents compared to the previous year, settling at €600. Évora and Portalegre experienced monthly increases but have not yet established a stable upward trend.
A representative from a national real estate association commented on the findings, stating, "The data confirms the robust health of the property sales market in the south, driven by both national and international interest. The growth in traditionally lower-cost districts like Beja is a noteworthy development." Government officials have not yet issued a formal response to the latest figures, but the data will likely be reviewed in the context of national housing policy discussions. The report provides a clear snapshot of a market characterized by strong sales growth and a more varied rental landscape. Stay informed on Lisbon property market developments at realestate-lisbon.com.
