Albufeira Property Prices, Rents & Rental Yields

About Albufeira

Albufeira sits on the Algarve coast with broad beaches, a historic old town, and a long-established appeal as both a holiday and residential base. Its apartment market reflects that dual identity, where coastal setting and year-round usability shape investor attention over time.

August 2026 brings the clearest signal in rents: average apartment rent fell to €1,300, down 18.8% month on month and 17.5% year on year. That drop stands in contrast to pricing at the point of sale, which held steady at an average of €360,000, while the average €4,000 per m2 was unchanged from the previous month and still 9.6% higher than a year earlier. The result is a market with firmer asset values than income, and that gap matters for underwriting.

For apartment investors, the headline yield of 4.82% captures this tension well. With sale prices broadly stable in August 2026 but rents weaker, the income side is doing less of the work than it was earlier in the year. The annual rise in € per m2 suggests the underlying pricing base has remained elevated even as monthly sale averages paused, so the near-term picture is less about momentum and more about balancing valuation strength against softer rental returns.