Faro Property Prices, Rents & Rental Yields

About Faro

Faro, the capital of Portugal’s Algarve region, blends a historic old town, a working harbour and easy access to the Ria Formosa coastline. For apartment investors, it offers a city setting with strong regional appeal, shaped by year-round activity and a distinctive coastal backdrop.

August 2026 brings the clearest signal in the rental line: apartment rents have eased to €1,650, down 8.3% from the previous month and 25.0% lower than a year ago. That drop stands in contrast to the broader pricing picture and creates a more cautious income outlook for new purchases.

On the sales side, the average apartment price sits at €464,500, only 1.2% lower month on month and still 3.2% higher year on year. At the same time, the average price per square metre has edged up to €3,750, rising 0.4% over the month and 7.4% over the year. That combination suggests values remain elevated even as rents adjust more sharply.

The result is a tighter investment equation than a year ago, with the current gross yield at 4.93%. For buyers focused on Faro apartments, August points to a market where capital values are still firm enough to hold the line, while rental income has weakened noticeably in the short term.