The Algarve remains one of Portugal’s most desirable coastal regions for international buyers. Stretching across 150 km of southern coastline, it offers more than sun-soaked beaches and world-renowned golf resorts. With picturesque towns, an enviable climate and strong transport links, buying property in the Algarve suits both lifestyle buyers and rental investors.
Whether you’re looking for a luxury villa in the Golden Triangle or a characterful townhouse in an inland village, the Algarve caters to a wide range of tastes and budgets. In this guide, we’ll walk you through everything you need to know about buying property in the Algarve in 2025 – from regional profiles and property prices to travel options and buying steps.
Contents
- Why buy property in the Algarve
- What to expect from the Algarve weather
- How to travel to the Algarve
- Where to buy in the Algarve
- Property prices in the Algarve
- Is buying in the Algarve a good investment?
- How to buy property in the Algarve
Alcoutim is one of the places you should look if you’re buying property in the Algarve
Why buy property in the Algarve
The Algarve’s enduring popularity owes much to its balance of natural beauty, good infrastructure and reliable weather. Home to some of Portugal’s most photogenic beaches, nature reserves and thriving towns, it appeals to both retirees and holiday homeowners alike.
Eastern Algarve towns like Tavira and Olhão offer a quieter pace of life and better value for money, with a character-rich Portuguese feel. To the west, locations like Lagos blend historic charm with access to surfing beaches and a vibrant ex-pat scene. Meanwhile, the Golden Triangle – covering Vilamoura, Quinta do Lago and Vale do Lobo – proudly claims the Algarve’s most luxurious homes, Michelin-star restaurants and world-class golf courses.
Beyond aesthetics, practicality also matters. Portugal offers solid legal protections, no ownership restrictions for foreign buyers and tax incentives for certain residents. Plus, the Algarve consistently ranks among the safest regions in Europe and offers good quality healthcare.
For a deeper look at purchasing abroad, claim your free copy of our Portugal Buying Guide:
What to expect from the Algarve weather
Portugal’s southern coastline enjoys a warm, Mediterranean-influenced climate with over 300 days of sunshine a year. In the summer months (June to August), daytime temperatures regularly reach the low-to-mid 30s°C, with virtually no rain and long, sunny days averaging 11–12 hours of daylight.
Shoulder seasons are also pleasant, making spring and autumn ideal for visits. In October, expect temperatures around 22°C and clearer skies than in northern Europe. Winter (December to February) is mild, with daytime highs of 15°C to 18°C. While winter sees more rainfall, it’s still far drier and warmer than most of the continent.
This year-round climate helps properties retain value and makes the Algarve a viable destination for full-time living or tourist rental income throughout much of the year.
How to travel to the Algarve
Flying into Faro Airport is the easiest way to reach the Algarve. Situated centrally along the coast, it connects with dozens of cities across Europe, including regular year-round flights from UK airports. For the lowest fares, book well in advance or outside of peak summer months.
If travelling from North America, direct flights to Faro remain limited. You’ll probably need to change in Lisbon, which is around a 45-minute flight or 2.5-hour drive away. Alternatively, drive from Seville in Spain – the Algarve border is just over two hours by car.
Thanks to ongoing improvements in infrastructure, the Algarve offers efficient motorway access via the A22 – known locally as the ‘Via do Infante’. Regional train services also link Faro with eastern and western coastal towns, including Lagos and Tavira.
Where to look when buying property in the Algarve
The Algarve can be divided into three broad zones, each with a different housing character and lifestyle offering:
Central Algarve
This part of the region is home to the Algarve’s most exclusive resorts, particularly within the “Golden Triangle” (Vilamoura, Vale do Lobo and Quinta do Lago). Expect luxurious villas, well-kept golf estates and manicured beachfronts. Central Algarve also includes towns like Albufeira with a livelier atmosphere and varied property options, from new builds to traditional cottages.
Eastern Algarve
The east is known for its authentic Portuguese charm, peaceful towns and affordability. Locations like Tavira, Olhão and Castro Marim offer easy access to golden sands, pristine nature reserves and stunning views of the Ria Formosa lagoon. Property prices here tend to be lower than in the central region.
Western Algarve
In the west, places like Lagos, Alvor and Sagres offer a more relaxed, traditional lifestyle. The terrain is rugged with dramatic cliffs and scenic walks. This area is popular with surfers, retirees and nature lovers alike. While tourism has expanded here, the pace is slower and the regions less built-up than central coastal hotspots.
Spotlight on alternative locations
- Loulé: A historic inland town within easy reach of Faro and Vilamoura, Loulé offers cobbled streets, market halls and an attractive blend of community and convenience.
- Faro: Often overlooked, the region’s capital is increasingly popular. It combines good transport links, a historic old town and strong local charm. It’s also just ten minutes from the airport.
- Olhão: This charming fishing port is ideal for those seeking a mix of modern convenience and old-world charm, with its whitewashed architecture and excellent seafood market.
Property prices in the Algarve
Prices across the Algarve vary by location, property type and condition. On average, property values rose in 2024, driven by strong interest from international buyers and improvements to energy efficiency standards in new builds.
You’ll need a minimum of €150,000 for a one-bedroom flat in a coastal town. Double that for a larger apartment or townhouse near the beach. Family homes with pools start from around €450,000 in less tourist-driven regions. In the Golden Triangle, expect to pay upwards of €700,000 for a three-bedroom villa – with luxury properties often exceeding €2 million.
New build condominiums are increasingly popular with overseas buyers, providing modern design, energy-efficient construction and low-maintenance facilities like pools and gardens. If you’re open to an inland property or a home requiring renovation, there are still bargains to be found from under €120,000.
Is buying property in the Algarve a good investment?
The Algarve attracts over five million visitors each year, with UK travellers making up nearly a fifth of all arrivals. The strength of this tourist appeal, combined with Portugal’s secure legal framework for buyers, makes the Algarve a great place for investing in Portuguese property.
Holiday lets remain particularly attractive in central and coastal east Algarve, where villas and apartments near beaches command strong weekly rental rates throughout the warmer months. Municipal licensing is required for short-term lets – your lawyer or local property manager can assist. So do read up on hiring a lawyer in Portugal and managing your Portuguese property.
Beyond rental income, long-term appreciation is also a consideration. Areas with upgraded infrastructure or proximity to new developments – such as train stations, marinas or motorways – are seeing values climb year-on-year.
How to buy property in the Algarve
Buying a home in the Algarve follows a well-defined process. Here are the essential steps:
- Work out your budget: Combine all costs including taxes, legal fees and currency exchange margins. Speak to a currency expert to plan overseas payments and secure a forward rate if needed. Book a call with Smart Currency Exchange to learn more.
- Get pre-approved for finance (if needed): Portuguese banks usually lend 70–80% to non-residents. A broker can help you compare offers and prepare documentation.
- Research possible areas: Start online and narrow your shortlist by lifestyle priorities – beach access, community size or investment rental potential.
- Engage a buyer’s adviser: A bilingual estate agent and lawyer will guide you safely through negotiations, paperwork and property checks. Avoid estate agents who lack registration credentials.
- Book a viewing trip: Visit your top locations in person. This is when many buyers confirm what matters most – be it town ambience, beach proximity or property quality. For more information, download your copy of our Viewing Trip Guide.
- Make an offer and reserve the property: Once accepted, you’ll sign a promissory contract (Contrato de Promessa de Compra e Venda) and pay a deposit of usually 10–30%.
- Complete final checks: Your lawyer confirms legal standing, ties up any due diligence and agrees the final signing date with a local notary.
- Sign the deed and collect the keys: Completion usually takes place within two to three months. If you’re not in Portugal, you can use a power of attorney to handle it remotely.
Legal fees typically account for 1–2% of the property price, and you should allow an extra 6–8% to cover taxes and notarial costs. For detailed advice tailored to your situation, book a call with one of our Portuguese property consultants today.
Looking to start your Algarve property journey? Book a free consultation today.
