Lagos

Lagos anchors the Western Algarve as one of Portugal's most sought-after coastal investment markets in 2026, blending a walled historic centre with the dramatic golden cliffs of Ponta da Piedade. Average asking prices reach roughly EUR 5,100-5,500 per square metre, placing Lagos among the priciest Algarve towns, with premium villa pockets commanding EUR 5,500-7,500+ per m2. Property values have climbed about 9% year-on-year as American and Northern-European demand outstrips limited new coastal supply. Gross rental yields run 5.0-6.5% in beach areas, with luxury short-term lets touching 8% in peak season. There are no general restrictions on foreign ownership in Portugal: EU and non-EU buyers alike can purchase freely with a Portuguese NIF tax number. However, the real-estate route to the Golden Visa was eliminated in October 2023 under the Mais Habitacao reform, so property purchases no longer grant residency, and the NHR tax regime closed to new applicants, replaced by the narrower IFICI+ scheme. Non-resident buyers should budget for IMT transfer tax, stamp duty and AL short-let licensing constraints, which are tighter in saturated tourist zones. Lagos remains favoured for its marina, blue-flag beaches, year-round expat community and forecast outperformance versus the wider region.