Real Estate In The Algarve

Portugal’s southernmost region, the Algarve, has long been one of Europe’s most popular destinations for sun-seekers, golfers, and retirees. 

Its world-famous coastline is a spectacular mix of long, golden sand beaches, soaring ochre-coloured cliffs, white-washed villages and hidden sea caves, all bathed in over 300 days of sunshine a year.

This perfect Mediterranean climate and stunning natural beauty have made the Algarve one of the most popular beach destinations in Europe, centered around a lifestyle that is relaxed, outdoors-focused, and attracting millions of tourists each year, as well as a huge number of expats.

Its sunny shores offer perfect escapes for all types, from those seeking an energetic nightlife, to families looking for secluded stays next to vast golden-sand beaches. It has historical attractions in former Moorish towns, thermal springs, and miles of limestone caves and grottoes, cliffs, and bays along its rugged coastline.

Property Market in The Algarve

The Algarve has one of the most mature and internationally sought-after property markets in Portugal. It is a prime destination for second-home buyers and retirees, particularly from the UK, Germany, France, and North America.

The property market in the Algarve is diverse, with a strong history of investment. The most common property types here include apartments, which are often found in modern developments with shared swimming pools and are ideal for vacation homes. 

For those seeking more space, villas are widely available, ranging from modern homes in residential areas to luxury properties with sea views. Within the historic centre of Lagos, you will find beautifully renovated traditional townhouses close that are within walking distance of all amenities.

However, people are flocking to the Algarve in record numbers, both for vacation and to live long-term; making an already popular destination, with a decades-long history as a tourism hot-spot, even more sought after. 

As a result, resale and rental prices are at historic highs caused by a critical shortage of inventory and a soaring demand for real estate. But if you can find the right deal, at the right price here, this is a fantastic location to own real estate in Portugal.

Where to Buy in The Algarve

Where you choose to buy real estate in Portugal and the Algarve will ultimately depend on your reasons for investing, or your lifestyle preferences. 

Lagos is arguably the most historic town on the Algarve. It’s compact, low-rise, and walkable. And is perfect for those who want to be in the heart of the action, with easy access to restaurants, shops, and spots all over town where you can catch breathtaking views of the Bay of Light.

The state-of-the-art Marina de Lagos offers views of the spectacular coastline and is popular with yacht owners, boat owners, and maritime enthusiasts. It features upscale apartments, well-maintained docks, high-end restaurants, and boutique shopping.

Lagos attracts tourists from all over the world. It’s a town with exceptional access. It’s just an hour’s drive from Faro international airport with good road connections. From Faro, you can catch a flight to almost anywhere in Europe, with direct flights available to 75 destinations in 16 countries.

For beach lovers, the area around Meia Praia offers apartments and villas with direct access to the Algarve’s longest sandy beach. The areas of Porto de Mós and Ponta da Piedade are known for their more exclusive, high-end villas, often perched on the cliffs with breathtaking ocean views.

Living In The Algarve

Lagos boasts a high-end marina that also includes restaurants and shopping. 

The lifestyle here is hard to beat. 

It’s been compared to that of California by the likes of LA Magazine, which is why so many folks from the Golden State love it here. The Algarve offers superior beaches, ancient architecture, cuisine noted for fresh seafood and excellent, inexpensive wines. 

It’s a place where the sun always shines and life is lived outdoors.

The Algarve’s natural attractions are its main draw. The region is world-famous for its coastline, and the area around Lagos is particularly spectacular, with the iconic sea arches and grottoes of Ponta da Piedade and the beautiful, sheltered beaches of Praia Dona Ana and Praia do Camilo.

The Algarve is also a top-tier global destination for golf, boasting dozens of championship-level courses that attract players year-round. 

Due to decades of international tourism and residency, English is widely spoken in most towns, especially in the service industry. The large and active expat community, particularly from the UK, Ireland, Germany, and the Netherlands, has led to the development of clubs, groups, and events that make integration very smooth for English speakers.

As a coastal region, the cuisine is dominated by fresh fish and seafood. Signature dishes include grilled sardines, “arroz de marisco” (seafood rice), and the famous “cataplana,” a seafood stew cooked in a traditional copper pan. 

The region is well connected and served by Faro Airport (FAO) and a motorway that runs the length of the Algarve, providing easy travel between all the major coastal towns from the Spanish border to Lagos. A regional train line also connects the main towns along the coast.

Cost of Living in The Algarve

The exceptional quality of life and international popularity of the Algarve are reflected in its cost of living, which is among the highest in Portugal, surpassed only by the capital, Lisbon. 

However, for many expats from North America and Northern Europe, the region still represents an affordable and high-value proposition. A couple could live a very comfortable lifestyle in Lagos for approximately $2,500 to $3,500 per month, depending on their housing choices and lifestyle.

Day-to-day expenses in the Algarve do still offer good value. Although you should expect to pay more in the main tourist areas, a cup of coffee at a local cafe will still typically set you back just over one dollar, while a “prato do dia” (dish of the day) for lunch at a traditional restaurant can be found for around $10 to $15. 

Groceries from large supermarkets are reasonably priced, but where residents and expats can make savings are by shopping at the local municipal markets for fresh fish, fruit, and vegetables. 

Despite the Algarve’s status as a tourist hotspot, it still allows for an affordable lifestyle, particularly for those who embrace local shopping and dining habits outside of the main tourist hotspots.

Real Estate In The Algarve: Our Thoughts

The Algarve represents a top-tier choice for anyone looking to buy lifestyle real estate property in Portugal. Its combination of an exceptional climate, world-class beaches, and a mature, welcoming international community is hard to match. For decades, it has proven itself as a stable and desirable market, making a property purchase here a sound long-term investment.

Within this renowned region, the town of Lagos stands out as a particularly compelling option. It offers the perfect balance, combining the authentic charm and history of a genuine Portuguese town with some of the most spectacular coastal scenery in the country. For buyers who want the quintessential Algarve experience of sun, sea, and a vibrant lifestyle, Lagos is undoubtedly one of the very best places to own a home.