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All signs pointed to a downturn of the real estate market, yet according to new data, house prices continue to rise. The year got off to flying start, with property values already increasing in the first month of 2022.

In January, property prices increased by 1.9% compared to December, and 13.8% compared to the same month last year, shows the Residential Price Index from Confidencial Imobiliário (Ci).

The Portuguese property databank released a statement last week, noting that this was one of the most expressive monthly increases since the beginning of the pandemic and “the fifth consecutive month of intensification of the chain variation”.

While it's common for property prices to increase in the month of January, it's the continuation of a trend that has seen the Portuguese real estate market thrive throughout the pandemic (read more).

The fact is that “this behaviour has led to the year-on-year variation gaining a strong impulse in the most recent months and that much of the appreciation of the post-Covid cycle has occurred in these last months”, said the statement.

With the average home in the Algarve now costing €2,057 per square metre (see here), there is little sign of the drop predicted from the end of loan repayments back in September 2021 (more here).

To find your dream property at the best value in this current climate, expert guidance is essential. Contact us at Algarve Home Sales for a dedicated service.