Rent price in Faro and the Algarve — rent index (2026)
Aluseg Rent Index · Data: INE, Q1 2026 · Updated July 2026
- Annual change in the median rent in the Faro district (2025 vs. 2024)
- +7.9%
- Biggest rise in the district: Monchique (2025 vs. 2024)
- +28.9%
- Rank in the annual rise among districts and regions (2025 vs. 2024)
- No. 12 / 20
- Legal update coefficient in 2026
- 2.24%
The indicator is the median rent for new contracts (not the average) — see the methodology. Geographic level: district.
Current rent price in the Faro district
| Indicator | Value | Period |
|---|---|---|
| Annual change in median rent (T2, Faro district) | +7.9% | 2025 vs. 2024 |
| National average over the same period | +7.4% | 2025 vs. 2024 |
| Legal update coefficient | 2.24% | 2026 |
| Biggest rise in the district (Monchique) | +28.9% | 2025 vs. 2024 |
| Median T2 rent in Monchique | €665 | Year 2025 |
Insufficient data to publish a reliable estimate of the monthly median rent in the municipality of Faro for this period.
Rent trend in the Algarve
- Santarém+14.0%
- Braga+11.4%
- Coimbra+10.2%
- Porto+8.7%
- Faro+7.9%
- Lisbon+6.5%
Prices by property type (Portugal)
Medians by property type are available at national level (Portugal). This edition of the Index does not publish medians by property type at the level of each municipality.
| Property type | 2024 median | 2025 median | Change |
|---|---|---|---|
| T0 | €408 | €439 | +7.5% |
| T1 | €623 | €670 | +7.5% |
| T2 | €683 | €734 | +7.4% |
| T3 | €824 | €885 | +7.3% |
| T4+ | €846 | €909 | +7.4% |
With no municipal median published for Faro in this edition, the national medians by property type serve as a general reference — values on the Algarve coast are typically above these medians, but the Index does not yet publish municipal detail.
Where rents rose most in the Algarve
Among Algarve municipalities, the only one in the national tables of this edition is Monchique, with the 3rd-largest rise in the country in 2025:
| Municipality | T2 rent (2024) | T2 rent (2025) | Change |
|---|---|---|---|
| Monchique | €516 | €665 | +28.9% |
The Algarve compared
With no municipal median for Faro, the comparison is made at the level of the 2025 district changes and the reference urban municipalities:
- Lisbon€1,617 · +8.9%
- Porto€1,186 · +6.6%
- Coimbra€854 · +6.9%
- Braga€762 · +4.2%
- Urban median€1,002 · +7.7%
| Municipality | T2 rent (2026-Q1) | Year-on-year | Quarterly | Rank (24 urban) |
|---|---|---|---|---|
| Lisbon | €1,617 | +8.9% | +5.2% | 1st |
| Porto | €1,186 | +6.6% | +0.3% | 6th |
| Coimbra | €854 | +6.9% | +0.4% | 17th |
| Braga | €762 | +4.2% | -2.2% | 20th |
Full municipal values in the Aluseg Rent Index.
Frequently asked questions
What is the rental price in the municipality of Faro?
This edition of the Aluseg Rent Index does not publish the median rent for the municipality of Faro (see the note at the top of the page). Nationally, the median for a T2 was €734 in 2025. To estimate the value of a specific property in the Algarve, use the Rental Market Simulator.
How much did rents rise in the Algarve over the past year?
The median rent for a T2 in the Faro district rose +7.9% from 2024 to 2025 — above the national average (+7.4%).
Where did rents rise most in the Algarve?
In the national tables of this edition, the Algarve standout is Monchique: +28.9% in 2025 (from €516 to €665 for a T2), the third-largest municipal rise in the country.
Why is there no data for the municipality of Faro?
The INE quarterly series used by the Index covers 24 urban municipalities (the larger district capitals and the Lisbon and Porto metropolitan areas), which does not include Faro, and the published annual tables do not break out Faro’s municipal median. We prefer to omit it rather than publish unreliable estimates.
How is the Aluseg Rent Index data calculated?
From 42,037 residential rent records (primary source: INE), aggregated into medians by municipality, district and property type. The values refer to new contracts. See the full methodology.
How often are prices updated?
With each new quarter of the INE series. This edition (July 2026) includes data through Q1 2026.
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Methodology
The Aluseg Rent Index aggregates median residential rents by municipality, district and property type, from 42,037 records. Primary source: INE (Statistics Portugal) — Instituto Nacional de Estatística (residential rents, 2024 and 2025; quarterly series through Q1 2026). The values on this page refer to the T2 property type, the most representative of the rental market, and relate to new contracts — they do not reflect the rents of contracts already in force, whose annual update is capped at the legal coefficient (2.24% in 2026).
The indicator is the median (the central value: half of contracts fall below it, half above), which is more robust than the average in markets with extreme values. The year-on-year change compares with the same quarter of the previous year; the quarter-on-quarter change, with the immediately preceding quarter. The values on this page refer to the Faro district; regional aggregates always state the geographic level (municipality or district).
Update frequency: with each new quarter of the INE series. Current edition: data through Q1 2026 (July 2026 edition). Full methodology and national series in the Aluseg Rent Index.
Data for journalists
The Aluseg Rent Index data on rents in the Algarve (Faro district) is free to use for editorial purposes, with citation and a link.
How to cite: “Source: Aluseg Rent Index (INE), Q1 2026.” — with a link to aluseg.com.
Last updated: July 2026 (data through Q1 2026). Cuts by district, municipality or property type available on request: hello@aluseg.com. Full national tables in the Aluseg Rent Index.
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National data
Market guide
For practical context on renting and putting a property on the market, see the rental market guide for the Faro district.