When the Algarve became a popular tourist resort, development centred around its beautiful coastlines, with Albufeira, Vilamoura and also the five-star resorts such as Vale do Lobo and Quinta do Lago.
Fishing towns and villages like Praia da Luz, Tavira and Lagos then became tourist hubs, and development spread west and east of Faro Airport and the central Algarve.
Yet there’s plenty inland for those who either want to escape the crowds and find lower prices, or for those for whom beaches aren’t a top priority.
In fact, as the Algarve has evolved from a highly seasonal destination into more of a year-round location – thanks to tax schemes, golden visa schemes and improving school facilities, as well as remote-working trends – more development has moved inland.
Examples include new resorts like Ombria – a golf and wellness resort near Querença and a 25-minute drive inland – that appeal to people seeking tranquillity rather than busy beach resorts.
Inland for peace and lower prices
There’s a case to be made for choosing villages 20 minutes or so inland if you are looking to move full time to the Algarve.
Not only are the towns or villages less seasonal – they do not become ghost towns during the winter and offer practical aspects for full-time residents – but they also offer lower property prices.
Take the town of Loulé, which is perhaps the most popular example of this. It’s long been an authentic market town with a Moorish market, cobbled streets and a traditional atmosphere, thanks to its artisan traditions.
Famed for pottery, it’s now become something of an artistic hub, with new art galleries and interiors outlets catering to the increasingly affluent population of the area – the town is also above the apex of the so-called ‘golden triangle’, with Almancil, Quinta do Lago and Vale do Lobo at its corners.
Almancil is the location of one of the campuses of Nobel Algarve, one of the region’s top international schools – the other is in Lagoa (also inland).
Other villages you might look at include Monchique, half an hour from the nearest beach. As its name suggests, it’s on the Algarve’s highest mountain, but it also has a thermal spa and is a little cooler thanks to its altitude.
It also suits expats looking for an authentic Portuguese lifestyle, as its ancient cobblestone streets and whitewashed houses offer a very different feeling to the package-resort towns like Albufeira. It may not be a lively hub like Loulé, but it suits nature lovers.
There’s also Silves, where many long-term expats – from teachers to estate agents – may opt to live. Once the Moorish capital of the region, it offers elegant architecture including its impressive red sandstone castle but also has modern amenities, which is why it appeals for year-round life.
You can find a small, renovated townhouse in the centre for €200,000, or a three-bedroom semi-detached home for around €270,000.
Other locations to consider include Boliqueime, Alte, Alcoutim, Querença, Estoi and Moncarapacho.
Coastal resorts for convenience and holiday rentals
Of course, the advantage of resorts by the sea is that you can have restaurants and bars on your doorstep, without having to get into a car. Public transport is much better along the coast – although there are good links to towns such as Loulé.
Property prices tend to be higher on the coast, although you can find a much bigger choice of modern apartments. If a seaside base for holidays is what you seek – in Albufeira, for example – you can find a lot of one-bedroom flats for €150,000 to €200,000 that simply would not be available in inland towns or villages.
But you’ll be lucky if you find a small house for less than €500,000 in the resort.
Prefer a seaside village? Burgau is lovely and more traditional, but you’ll pay at least €700,000-plus for a villa.
If you are looking to bank on some holiday rentals to cover running costs, then buying near the coast is always a better bet – unless there is some stand-out attraction inland that draws regular tourists.
Most of the new top hotels and restaurants are located on the coast, drawing the largest number of visitors – especially families who prize easy access to the beach, which remains the main attraction of the Algarve, aside from three waterparks.
Albufeira, Vilamoura, Lagos and Tavira are stand-out favourites for holiday rentals, with Lagos especially seeing much more winter demand.
Start your Algarve property search today
Whether you're drawn to the coast or tempted by tranquil inland towns, the Algarve has something for every lifestyle and budget. Begin your journey today and see what’s possible.
