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Since the start of the pandemic, despite reservations, property prices have risen consistently across the country, in particular in the Algarve. The cost of long-term rents, however, has continued to drop. But why?

In the latest real estate price index released by the Portuguese real estate platform idealista, the price of properties available to rent for the long term has fallen by almost 5% compared to August last year. Renting a property now costs an average of €10.90 per square metre.

The biggest drop was registered in Lisbon, no doubt an effect of the travel limitations and the subsequent drop in tourists and holiday rentals in the last year and a half. As such, many property-owners have turned to the long-term rental market.

Prices have also continued to drop in the Algarve, which remains the second most expensive region to rent a property (€9.80/sqm), behind the capital. Meanwhile, rental costs have risen most significantly in the Alentejo region (3.9%), as well as in Central Portugal, Madeira and the Azores.

With the rise of remote working and changing lifestyle needs of many young couples and families brought about by the pandemic, there seems to be an exodus from the cities in favour of larger homes in calmer areas.

Whether you're looking to buy to rent, or enjoy a home in the Algarve yourself, contact us at Algarve Home Sales. Our team is happy to provide impartial advice on investing in real estate in Portugal.