The Algarve remains the top draw for British buyers in Portugal by some margin.
Lisbon may be a digital nomad hotspot, Comporta increasingly fashionable, and the Silver Coast gaining traction as a lifestyle alternative - but nowhere comes close to the Algarve.
Its Mediterranean climate, world-class golf, beautiful beaches and strong infrastructure make it hard to beat. Portugal’s digital nomad visa and D7 visa also make it relatively easy for non-EU citizens to work remotely, especially given the Algarve’s lower cost of living compared to Lisbon or London. It certainly now feels far less seasonal than it did a decade ago.
Just a two-hour flight from the UK, the Algarve is also an easily accessible weekend destination with a good supply of flights into Faro Airport - and this year direct flights from the US too, the region’s popularity is only growing (along with property prices).
Whether you’re after fine dining, five-star resorts, international schools, surfing, or peaceful traditional villages, the Algarve ticks every box.
It's less hectic and in-your-face than the Costa del Sol in Spain, and is much less developed as a result. This is part of the appeal for British families, retirees, and holiday home buyers, whether spending €300k or €3m.
The region continues to evolve, from Vilamoura’s new marina and upcoming elite sports centre (due in 2028) to cutting-edge sports and wellness facilities at Quinta do Lago and now Vale do Lobo too.
Where and What to Buy?
The Algarve naturally divides into three areas - Central, Western and Eastern Algarve - each offering a distinct feel and property market.
Central Algarve
Stretching from Lagoa to just east of Faro, this is the Algarve’s most well-known and well-connected area, close to Faro Airport and at the heart of tourism.
Vilamoura is a major hotspot, with a large marina, several golf courses, and more developments on the way. It’s close to the airport and you can find one-bedroom apartments from around €250,000, while small villas typically start from €600,000.
Nearby Albufeira is a handy 30-minute transfer from Faro airport: there’s an old town of cobbled streets lined with restaurants, bars, cafes and shops; an attractive marina with sandy beaches - plus a fashionable W branded hotel. You can buy a studio apartment from around €150,000, while two-bedroom properties tend to start from around €250,000.
Loulé is a charming inland town with an artistic community, not far from the eco-conscious Ombria Resort, which is attracting higher-end buyers. In and around Loulé, you can find a rustic or modern three-bedroom home for about €300,000.
Almancil lies at the heart of the so-called “Golden Triangle”, offering easy access to Quinta do Lago and Vale do Lobo. Its location, just 15 minutes from Faro Airport, adds to its premium appeal. Three-bedroom townhouses here start from around €300,000, while villas in Quinta do Lago begin at around €750,000 and can exceed €20 million. Apartments in the same resort typically start at €500,000. In Vale do Lobo, striking contemporary villas usually fall within the €5 million to €20 million range.
Western Algarve
Generally viewed as a bit less developed than the central Algarve, especially toward the Atlantic coast, the western Algarve is known for its wide beaches, traditional fishing villages, and laid-back lifestyle.
Lagos is the standout town in the area. It’s lively year-round, with a historic centre, vibrant nightlife, a popular town beach, and a strong expat community. Prices have risen significantly in recent years. A one-bedroom apartment here typically costs between €200,000 and €250,000.
Porto de Mos is one of Lagos’s lovely beaches – but you can expect to pay nearer €500,000 for a two-bed, two-bath new apartment in one of the complexes behind the coast.
Nearby Praia da Luz is a very popular resort and great for families as well as retirees. Expect to pay around €400,000 for a good two-bedroom apartment or nearer €500,000 for a house.
The more tranquil fishing towns of Salema, Burgau and Sagres are also worth exploring. In Salema, for example, a three-bedroom townhouse starts at approximately €300,000.
Eastern Algarve
This section, between Faro and Spain, is the least developed of the three tranches of coastline. Buyers prize it for its authenticity compared to the glitzier parts further west.
This area is defined by the lagoons and sandbars of the Ria Formosa Natural Park, and the standout location is Tavira – a former fishing village turned cosmopolitan riverside town. It’s known for its fish restaurants, beautiful architecture, and the ferry rides out to the sandbanks. Nearby, the beachside village of Cabanas de Tavira is another favourite.
The French love this area so it’s no longer the ‘cheap’ Algarve where you can get an apartment for €100,000. Now you’ll need to pay €220-250,000 for a one-bed apartment or €350k for a little house.
Other hotspots include Vila Real de Santo António, which offers a good marina, and Castro Marim, ideal for those who want to be close to the Spanish border – just a short hop across for lunch and tapas.
Ready to Explore?
Start your search for your perfect Algarve home with our properties for sale in Portugal, or get expert guidance in our Buying Guide to Portugal.
