Quarteira, Lagos, Almancil, Albufeira and Olhos de Água were all among the areas with the highest concentration of upmarket properties in Portugal in 2025, with the Algarve ranking second only to Lisbon.

Figures from the second edition of the Realty Premium Market study, carried out by NOVA School of Business & Economics, show that the Faro district accounted for around a quarter of all high-end residential properties available in mainland Portugal during the final quarter of 2025. This represented approximately 6,000 homes.

Property prices in this part of the market have already risen above €6,800 per square metre in the Algarve, while some of the region's most exclusive areas are considerably more expensive.

Competitiveness

Quinta do Lago remains one of the clearest examples, with prices reaching €10,825 per square metre by the end of last year. Despite these prices, the Algarve is still considered competitive when compared with other major European luxury property markets, including London, Paris and Madrid.

Quarteira takes second place nationally for the concentration of high-end properties available. Supply in the parish increased by 35% compared with 2024, reaching 1,714 properties during 2025.

The study divides the upper end of the property market into three categories: Affluent, covering properties within the top 10% to 5% of the market by price; Premium, representing the top 5% to 2%; and Luxury, which includes the most expensive 2% of properties.

Holiday residences

The type of luxury property available in the Algarve also differs from other major Portuguese markets. While apartments are more dominant in Lisbon and Porto, the Algarve has the highest concentration of high-end villas in the country.

Large villas with four or more bedrooms are particularly common, often located within resorts or private condominiums and offering features such as swimming pools, gardens and sea views.

International buyers continue to play an important role in the market. Buyers from the UK, Germany, the Netherlands and Scandinavian countries are among those showing the greatest interest in Algarve properties, particularly when looking for second homes or holiday residences.

At the same time, there has also been growing interest from buyers from the Middle East and the United States, especially in ultra-luxury developments and branded residences.

The Algarve's appeal at the higher end of the property market is linked to several factors, including its coastal location, international resorts, golf courses and limited supply of properties in the most desirable areas.