House rental prices in the Algarve rose 22.8% in August compared to the same month in 2025, recording the highest annual increase among the Portuguese regions analyzed by the idealista real estate platform. The median rental value in the region reached 21.3 euros per square meter, approaching the 21.5 euros of the Lisbon Metropolitan Area. Nationally, rents grew 4.9% over the course of a year, to 18.1 euros per square meter.
Among Algarve municipalities, Portimão showed the highest year-on-year increase, of 31.1%, becoming the leader among the municipalities analyzed at 20.5 euros per square meter. Silves followed with a rise of 7.4%. In the opposite direction, Tavira recorded a drop of 20.3%, Faro of 6.4%, and Loulé of 5.4%.
Among the district capitals analyzed, Faro showed an annual decline of 6.4%, coming in second only to Coimbra, where the drop was 8.2%. Despite the decrease, Faro remains among the capitals with the highest values, at 15.1 euros per square meter, with Lisbon leading at 24.5 euros, followed by Porto at 18.6 euros and Funchal at 17.3 euros.
In the regional analysis, six of the seven regions showed increases in rental prices, with only the North recording a drop of 6.3%. The Algarve led the increases, followed by Alentejo with 11%, the Autonomous Region of Madeira with 10.3%, the Azores with 8.8%, the Lisbon Metropolitan Area with 7.6%, and the Center with 4.2%. The idealista index is prepared based on offer prices published by advertisers, with listings considered atypical or with values outside the market excluded.
