Buying a property in the Algarve
The Algarve is Portugal’s most sun-kissed and sought-after location. It stretches for 150 kilometres along Portugal’s southern coast, known for its beautiful beaches (many boasting a Blue Flag), numerous golf courses and leisure activities.
Property ranges from traditional, older homes inland to luxury waterfront ones. Given the Algarve’s status as a holiday haven, it is a great investment opportunity too.
Why buy a property in the Algarve
The western Algarve is extremely picturesque, with rugged cliffs, national parks and stunning coastal views.
As well as the natural advantages it has high-end shopping, top class restaurants and luxury hotels. It is home to famous resorts such as Vale do Lobo, Quinta do Lago and Alvor. You may spy famous faces, from footballers to daytime telly hosts.
By contrast, while no less beautiful, the eastern Algarve is less developed with a flatter landscape, an authentic atmosphere and more affordable property options.
The weather in the Algarve
The Algarve experiences pleasant year-round temperatures. June, July and August are the sunniest with 12 hours of sunshine a day, rarely a cloud in the sky and temperatures ranging from the mid-20s to 30s°C.
Sunbathers can still be found on the beach in October, with temperatures only dropping to around 19°C in November, it also gets rainier. In winter, the average daily maximum is 16°C with six hours of sunshine a day.
How to get to the Algarve
The Algarve is served by Faro airport. It has great connections to the rest of Europe. For the lowest cost flights, book in the off-season or well in advance. In recent years, there has been talk of creating direct flights to North America. However, for now, you will need to get a domestic flight (or car or train) to Lisbon and fly on from there.
If you fancy the road trip and a stop off in Spain, the Algarve is around a two-hour drive from Seville airport.
Where to buy property in the Algarve
The region can be divided into three main areas, so we’ve created three profiles to help you find the best places in the Algarve:
The Central Algarve: This region of the Algarve is known for its beautiful countryside, stunning beaches, and acclaimed vineyards. It’s the home of the famous “Golden Triangle” and is the most desirable (and expensive) area on this coast.
The Eastern Algarve: In the east, you’ll discover a part of the coast that is renowned for its natural beauty, where picturesque coastal villages sit alongside golden sands, green hills, and rugged cliffs. This area has the mildest climate and warmest waters in the Algarve.
The Western Algarve: Life is slower in the western Algarve, where you will discover an old fashioned, traditional vibe than the more touristy areas. However, the infrastructure has been vastly improved over the last 10 years, opening this region up to more visitors.
The Golden Triangle
As its name anticipates, the Golden Triangle is a collection of the most exclusive resorts in the Algarve. It compromises of Vilamoura, Almancil, Quinta do Lago and Vale do Lobo. Bonnie Tyler, former PM David Cameron, Cristiano Ronaldo and Holly Willoughby have enjoyed its glorious Blue Flag beaches. In the Golden Triangle, you will find world-class 18-hole golf courses with incredible views, bustling marinas with superyachts, five-star hotels and Michelin restaurants.
What can you get for your budget in the Golden Triangle
Unless you are looking for a renovation project, the starting price for a small apartment in this area is €200,000. While a family townhouse will cost upwards of €700,000. From penthouses with breathtaking views to sprawling villas, the Golden Triangle has an impressive luxury property market.
Affordable alternatives to the Golden Triangle
Lagos
Lagos has a distinctly cosmopolitan vibe. A historic port city, it now boasts of a modern marina, a characterful Old Town and the one of the Algarve’s best surfing beaches, Meia Praia. It has seen a lot of development in recent years but remains a slightly more affordable alternative to Vilamoura.
Loulé
Loulé is a pretty town with attractive medieval streets, a castle, a Gothic church and one of the Algarve’s best markets. While tourists do visit to soak up its history, they tend not to stay as it is not a resort town, which might appeal to potential homeowners.
Faro
The Algarve capital is becoming increasingly popular with overseas buyers who like the convenience of city living but also prefer an atmosphere considerably more laidback than Lisbon and Porto. It is just ten minutes from the airport. It has lovely beaches, charming historic town and a lively Sunday market. Another advantage of a home in Faro is how well connected it is to Tavira, Lagos and even Lisbon.
Olhão
About twenty minutes east of Faro, Olhão is an attractive Moorish city. It is a historic port city, which a fishing industry that continues to thrive. Unsurprisingly, its waterfront market is one of the best for fish, meat and fresh, local produce.
Its Old Town area is home to the stunning, white-washed buildings that the Algarve is famous for. But it also has a taste of modernity too: with the condominium-style living in Marina Village and the large Ria shopping mall.
Tavira
Tavira is the best-known destination in the eastern Algarve. It has earned the nickname of the “Venice of the Algarve” as it sits along the River Gilão and is connected by a series of bridges (including a Roman one).
Tavira has a Moorish castle, the Ria Formosa Natural Reserve (complete with flamingos!) and its own island. Spain is just an hour’s drive away.
Albufeira
Albufeira has a lovely Old Town of cobbled streets and Baroque buildings, a fun marina and a lively beach nightlife, especially at “The Strip”.
Property prices in the Algarve
For a studio to small two-bedroom apartment in the Algarve, you’ll need at least €150,000.
You can buy a renovation project or time share for considerably less. The typical price for a three-bedroom townhouse is €350,000. If you are after a family villa with a pool and garden, then you’ll need €500,000. Even outside of the Golden Triangle, property prices are competitive across the Algarve and the new build and luxury property markets are booming,
Inland Algarve
If you have a smaller budget and don’t mind driving to the beach, then you may want to base your property search inland. Here, you will find authentic villages in beautiful natural surroundings with a low cost of living and traditional, inexpensive homes for sale. These inland gems are a great place to look: Alcoutim, São Brás de Alportel, Alte, São Bartolomeu de Messines and Monchique.
Is a property in the Algarve a good investment?
According to Statista, more than five million travellers visit the Algarve each year. Visitors from the UK were the highest proportion at 1.1 million. So a holiday home in the Algarve can be a lucrative investment. The closer to the beach you can buy, the more sought-after your property will be.
Steps to buy in the Algarve
It’s best to be methodical and see buying property in The Algarve as simple set of steps, none of which is particularly difficult. Before you know it you can own your own home in The Algarve!
- 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 The Algarve to buy for your particular budget, lifestyle, needs and interests. If aiming to move to The Algarve 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 The Algarve. 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 The Algarve at Your Overseas Home. This will open a dialogue with recommended, English-speaking estate agents in The Algarve.
- 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 The Algarve.
- 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 The Algarve.
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