What's Available and Worth Considering in the Lagos Property Market Today?
Lagos, located in the Western Algarve, offers a dynamic property market with options for both buyers and renters. Catering to different lifestyles, budgets and favourable investment opportunities, the area provides plenty of options to explore.
But first, let’s look at the current market conditions.
Current Market Overview
The property market in Lagos continues to attract steady demand from both local and international buyers, with property prices seeing moderate growth. It remains a sought-after destination for those looking for both primary residences and vacation homes. In 2024, the Algarve property market experienced a notable 15% increase, with Lagos specifically seeing a 9.7% increase in property prices, reflecting the area’s strong appeal. While high-end luxury properties often make headlines, the market also offers a mix of townhouses, apartments and villas to suit different buyers.
The Algarve, including Lagos, recorded an average property price of €3,334 per square meter, highlighting the region's diverse opportunities. This upward trend in property prices reflects the enduring appeal of the area. The Algarve's real estate market is projected to grow by 5.8% in 2025, outpacing the broader EU market, which is expected to decline by 2.5%.
Types of Properties in Lagos, Portugal
Townhouses
Townhouses – Found mainly in the town centre, townhouses offer traditional Algarvean architecture and convenient access to shops, restaurants, and attractions.
Apartments
Smaller to Medium Apartments – One to three-bedroom apartments are common in and near the town centre, offering easy access to the beach and amenities.
Larger Apartments – Spacious apartments, often with multiple bedrooms and shared facilities like pools and gardens, are popular among families and investors.
Villas
Modern Villas – Featuring contemporary designs, private swimming pools, and large outdoor spaces, modern villas often boast stunning countryside or coastal views. Popular areas in and around Lagos include Porto de Mós and Praia da Luz.
Traditional Villas – Located in quieter areas, traditional villas offer larger plots and a more secluded lifestyle.
Investment Opportunities in Lagos
Lagos is a popular destination for both tourists and long-term residents, making it a strong choice for investors.
Short-Term Rentals – Properties near the beach or town centre generate strong returns, with the Algarve averaging a rental yield of 5.6%.
Long-Term Rentals – With steady demand from expats and professionals, long-term rental yields average around 5.8%, providing consistent income.
Foreign Investment Benefits – Portugal’s Non-Habitual Resident (NHR) tax program offers potential tax exemptions on foreign income for the first ten years of residency, making Lagos even more attractive for international buyers.
Occupancy Rates
The Algarve’s strong tourism industry ensures a robust rental market. In July 2024, the region’s average short-term rental occupancy rate reached 83.4%, with Lagos following a similar trend due to its prime location and attractions.
With high occupancy rates and rising demand, Lagos remains a compelling option for investors looking for strong returns and long-term value.
Factors to Consider When Buying Property in Lagos
Location – Town centre and beachfront properties offer convenience and lifestyle benefits, while properties further out provide more space and privacy.
Budget – Prices vary based on location and property type, with premium properties commanding higher prices.
Property Condition – Older properties may require renovations, while newer homes offer modern features with minimal upkeep.
Legal Consideration – Working with a local real estate expert ensures a smooth buying process and compliance with Portuguese property laws.
Conclusion
Lagos offers a wide range of properties catering to different needs and budgets, making it an appealing destination for families, holidaymakers and investors. With strong demand from both residents and tourists, alongside rising property values and a strong rental market, Lagos remains an attractive option for buyers and investors.
To find out more about available properties in Lagos or to explore specific listings, visit our website at B&P Real Estate. We can help you navigate the property market and answer any questions you may have.
