Buying a property in Albufeira
Albufeira is a town and tourist resort in the central Algarve, on the southern coastline of Portugal, within Faro district.
The town of 25,000 (considerably more in summer) has been the heart of tourism in the Algarve for 50 years, with its beautiful beaches and cliffs, bustling marina and exciting nightlife.
Albufeira’s Old Town, lined with trees, has cobbled streets, Baroque buildings, art galleries, cafes, restaurants and boutique shops.
Albufeira’s beaches are family-friendly spots for sandcastles and water sports by day and party hotspots by night. The largest beach is Praia da Oura, then two beaches are connected to Albufeira’s charming old town, Praia do Túnel (which is connected via tunnel) and Praia dos Pescadores.
As well as the beach, partygoers head to the neon-lit streets of “The Strip”, which is lined with a choice of pubs, bars and clubs
Another go-to spot is the Albufeira marina, with great seafood restaurants. From here you can book your dolphin-watching expedition, or maybe hire a kayak.
Why buy a property in Albufeira
Albufeira attracts visitors and property buyers seeking a tan and a dance, or to make sandcastles and swim in the cool Atlantic. It’s an ideal location for buyers who want to live in a lively area whether with children or without.
There are truly spectacular modern developments available, even with reasonable prices.
Albufeira also presents a great opportunity for those interested in investing in property due to the high volume of tourism.
It is a not a town that shuts down in winter. Buy a property here and you could enjoy warm and sunny winters within the 90-days rule, and then rent it out in summer (subject to getting the correct licences of course).
Where to buy in Albufeira
If you’d like to be near the hustle and bustle of Albufeira’s coastline, look to a home by the marina or your favourite beach. To the north of “The Strip”, Montechoro still has plenty of restaurants, hotels and bars but has a more chilled vibe.
In the Old Town, you will find more traditional properties. Olhos de Água, located in the municipality of Albufeira, is a fishing village turned resort with a quieter atmosphere. It is a top choice for buyers that want to be close to the nightlife of Albufeira but not be able to hear it out their own window.
What can you get for your budget in Albufeira
Albufeira has a range of low-cost renovation projects, easy maintenance apartments, villas and new builds for sale.
In Albufeira, studio apartments can be found for less than €100,000 and one-bedroom apartments from €130,000.
Newer apartments located in a residential complex benefitting from sea views, gardens and a pool tend to a require a budget of closer to €180,000.
Typically, townhouses with three-bedrooms or more sell for around €350,000. While a villa with a private pool will cost €500,000. Property prices are on par with the rest of the Algarve, except for the pricier Golden Triangle.
Is a property in Albufeira a good investment?
The Algarve is one of the most-visited regions in all of Portugal and with Albufeira’s status as its party hotspot, a holiday home there is bound to be booked up.
According to Statista, five million people visited the Algarve in 2023. In peak season, holiday homeowners can expect an attractive rental yield, as holidaymakers seek to be closest to the best beaches and bars. You will have to fully register your property and apply for a licence, Alojamento Local.
For capital growth, prices in Portugal overall have been rising by between 7 and 13% per annum in the five years to summer 2024, however that has been tailing off.
Asking prices for Albufeira properties are roughly €3,500 per square metre for apartments and €4,200psm for houses.[2] While prices achieved will be lower, this is still considerably above (double, even) the Portugal average.
So, investors will need deep pockets to get started, but high-end does tend to remain high end and a positive return on investment could be expected over the long term.
The weather in Albufeira
In July and August, Albufeira enjoys highs of 30°C and up to 12 hours of sunshine. Spring often sees highs in the mid-20s°C with little rainfall and cooler evening temperatures.
Autumn is similarly warm but much rainier. Winters are mild but wet with a strong breeze from the Atlantic and highs of 17°C.
How to get to Albufeira
Faro international airport has a steady stream of flights to the rest of Europe. You will have to travel to Lisbon or another major European city to reach America and beyond.
Faro airport is a 40-minute drive to Albufeira. There are bus routes available, which take slightly longer, and a train route, but the train station is some three miles north.
Steps to buy a property in Albufeira
It’s best to be methodical and see buying property in Albufeira as simple set of steps, none of which is particularly difficult. Before you know it you can own your own home in Albufeira!
- Set a budget: Work out how much you have to spend. Read our guide, How to pay for a Portuguese property to see your options. Speak to Smart Currency Exchange about exchange rates and international payments. Get a mortgage approval in principle if required. Remember to allow for buying costs.
- Do you research: Research the best areas around Albufeira to buy for your particular budget, lifestyle, needs and interests. If aiming to move to Albufeira full time, connect with an independent lawyer to discuss your residency and visa options. If hoping to rent a property out, check if this is legally possible.
- Online search: Once you know how much you have to spend in euros, you can start browsing available homes for sale in Albufeira. Check out the appeal of different locations. Explore the area on Google Earth too, which will help you get an idea of the area. Make some enquiries on properties for sale in Albufeira at Your Overseas Home. This will open a dialogue with recommended, English-speaking estate agents in Albufeira.
- Book a viewing trip: When you have narrowed your online list as far as it will go, speak to an estate agent and book your trip to Albufeira.
- Make an offer: When you’ve found a property you like, make an offer via your estate agent.
- Reservation contract & deposit: Once accepted, you may be asked to sign a reservation contract (Contrato de Promessa de Compra e Venda) and pay a deposit. Before you pay the deposit, we recommend speaking to a currency specialist who can help you lock in the rate for the duration of your property purchase, to avoid it fluctuating with the markets. The deposit is usually around 20% of the purchase price.
- Completion: This will be at the notary’s office (or by your lawyer via power of attorney), probably two months or so later. Congratulations, you now own a property in Albufeira.
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