Faro Real Estate: Your Complete Guide for 2025

Faro Real Estate Market

With a strong expat population and as a favorite tourist destination, real estate in Faro, Portugal, has evolved over the years to cater to all sorts – luxury homes, short and long-term rentals, and second homes.

Here, we’ll share some key insights into the real estate market and why Faro could be the ultimate location in which to invest, relocate, or simply have a safe haven to escape to come summer.

Property prices in Faro, Portugal

According to Confidencial Imobiliário, the average asking price for property in Faro was  €3,701 per square meter in 2024, with rental yields for the Algarve region averaging at 5.6 percent. As the capital of the Algarve region, Faro can be a smart choice for owning a property.

Why invest in Faro, Portugal, real estate?

Faro is located in the middle of the Algarve, with luxury homes and sleek modern apartments to be found here. If you are considering Algarve real estate, choosing Faro is a good move. Its central location, with Faro Airport as the gateway to the region, is an added bonus. For travelers, you will be able to quickly and easily travel both nationally and internationally.

Many expats have relocated to Faro, with the city accounting for around 15 percent of the expats in Portugal. This popularity is beneficial to investors, with demand for more properties focused on this sunny city in the south as expats continue to choose the city in their move to Portugal.

Investors will be content to find that the cost of Faro property for sale is cheaper when compared with the more exclusive postcodes, such as Lagos and Albufeira, although real estate in Carvoeiro, about an hour’s drive east, also offers affordable properties.  You’ll also find a wide selection of luxury homes for investors who are after something extremely special.

The market has been deemed reliable if you are looking to rent out your property and secure a nice profit. Rental yields stood at 5,60 percent in 2024 for the Algarve region. As one of the safest countries in the world, and with the Algarve region being one of the most sought-after holiday destinations, landowners should be pleased to know that there should be no problems finding tenants for their properties.

Check out our article: Cheap Houses with Pool: Affordable Property in Portugal.

Types of Property

You will find many different types of properties for sale in Faro, and if you do a quick online search of real estate listings, you’ll quickly see an overview of what Faro has to offer. In the city itself, you have many modern apartments that cater to the large expat population. You also have many beach houses with sea views, townhouses, luxury homes, and spacious villas.

Whichever type of property you are looking for, you should have no issue finding it in Faro – whether it’s a four-bedroom family house or a swanky modern villa with your own pool. The more properties you explore, the more likely you are to find the perfect property matching your lifestyle needs. So rest easy that with some scouting around, you should come up trumps.

Faro, Portugal Real Estate: Luxury Homes

Homebuyers and investors looking for a little more flamboyance will be pleased to know that Faro also has a rich luxury market, with many luxury homes up for grabs, which you’ll quickly discover by doing a quick search of real estate listings in the area. You can choose from investing in luxury villas in Portugal with sea views and pools, properties close to the beaches and golf clubs, alongside modern houses and killer apartments.

While Vilamoura and the Golden Triangle close by usually capture the headlines in terms of luxury in the Algarve, there are several options close to Faro, where you will be able to find your dream home. Albufeira and Lagos can also be good places to find luxury homes, while Portimão real estate, close to the fabulous Praia da Rocha beach, is also a fantastic option to buy.

To find out more about the property market in Albufeira, check out our guide: Albufeira Real Estate.

If you are seeking out something slightly quieter, property for sale in Alvor, Portugal, could be a nice alternative, with beautiful white washed homes and charming cobbled streets.

Buying Process in Faro (Step by Step)

The buying process in Faro is fairly straightforward, and to make things as easy as possible, in the table below, you’ll find a simple, step-by-step guide to the purchasing process.

We strongly recommend working with a real estate agent in Faro. or, preferably, a buyer’s agent if you are considering buying property in the Faro area. Buyer’s agents in Portugal will work on your behalf throughout your buying journey, while real estate agents traditionally work for the seller.

It’s also essential to have a real estate lawyer in the Algarve on your side to ensure you face no legal issues and perform the necessary due diligence.

Financing & Mortgage Options for Buyers

Portugal offers mortgage options for foreign buyers, with terms varying depending on your residency status. Non-residents typically have a maximum loan-to-value ratio of 60 to 80 percent, while for residents, the maximum is around 80-90 percent.

You will be able to choose from fixed-rate mortgages, mixed-rate mortgages, or variable-rate mortgages, each of which will have its own benefits and drawbacks. The most common option in Portugal is currently fixed-rate mortgages.

For a complete rundown of your financing options, check out our aritcle on Mortgages in Portugal.

Lifestyle in Faro

• Activities and watersports: In Faro, as with everywhere in the Algarve, you will be able to live a very active lifestyle. From watersports such as kayaking and surfing to activities that you can enjoy on land, such as biking, yoga, and meditation, you’ll be spoiled for choice by the activities on offer. You can even try some new activities or sports while you are at it.
• Golfing: Keen golfers will be able to meet fellow expats at one of the many golf courses in the area. The golf courses in the Algarve are world-renowned.
• Fine dining and restaurants: With a Michelin-star restaurant and many fine dining experiences, Faro can cater to those looking for a more opulent lifestyle. In addition to many family-owned eateries, you have perfectly cooked, freshly caught fish dishes.
• Stunning beaches: In and around Faro, you’ll be able to enjoy endless white sandy beaches and turquoise blue waters. Top options close to the city include Praia da Barreta and Praia da Armona. You’ll also be well-positioned to explore the beaches across the Algarve region, with train links to most of Southern Portugal.

For retirees, the Algarve is one of the best locations to retire to, ranking in first position in the Global Intelligence 2025 Global Retirement Index.

Families will be pleased to know that you will find international schools across the Algarve region, with very good options not too far from Faro. There are four international schools in neighboring Loulé, and the Eden Montessori International School is located in Albufeira to the west.

If you are seeking a quieter, more authentic experience, the Eastern Algarve is your best option. Vila Real de Santa António real estate, for example, close to the Spanish border, could be your idyllic location.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.