words Alana Webb
The Algarve has long held a reputation as one of Europe’s most appealing coastal regions, not just for holidays, but for full-time living. Averaging over 300 days of sunshine each year, a relaxed pace of life and strong infrastructure for both locals and expats, it’s easy to see why more people are buying property here. But which areas offer the right fit?
Here’s a look at three very different corners of the Algarve, and what makes them stand out for those considering a permanent move or a second home in Portugal.
Lagos, A Bit of Everything
On the western Algarve, Lagos continues to attract a mix of international buyers and locals who want both comfort and convenience. Its old town has charm without being overly touristy, and you’re never far from some of the region’s best beaches.
Those looking for something a little more refined will find a strong market for luxury properties in Lagos, particularly near golf courses and the marina. The town has seen steady investment in recent years, making it one of the Algarve’s most desirable areas for high-end living without feeling cut off from everyday essentials.
Aside from luxury properties, the general market is booming there, with this year seeing a significant uptick in those looking to buy property in Lagos, Portugal. There’s also a strong rental market in Lagos, making it appealing to those looking for a second home that can double as a seasonal investment. Many buyers choose properties that are walkable to amenities but still set back from the tourist zones.
Around Lagos, other popular areas include the likes of Carvoeiro, Praia da Luz and Porto de Mós, which consistently boast great records of property price growth due to their proximity to Lagos and unique settings.
Tavira, Master of Tradition
Further east, Tavira offers a slower pace and a more traditional Portuguese feel. Well known for its cobbled streets and preserved architecture, it’s a popular choice among buyers who value character and culture over large-scale development.
Unlike some parts of the Algarve, Tavira retains a strong year-round community. If you’re exploring the local market, working with an established real estate agency in Tavira can make a big difference in understanding which areas are growing and which remain under the radar. The long standing agents there can open the door to Tavira real estate for you.
Tavira also benefits from being close to the Spanish border, giving residents access to more travel options and weekend getaways. For people relocating full-time, this kind of flexibility can be a big plus.
Moncarapacho & Olhão, Simply Authentic
If you’re after a slice of the Algarve that still feels untouched by mass tourism, the area around Moncarapacho and Olhão is worth considering. These inland and coastal towns are rooted in tradition, with local markets, working fishing ports, and easy access to nature reserves.
This part of the eastern Algarve also offers better value than many of the coastal hotspots. For those interested in countryside homes or village life, there’s growing interest in Moncarapacho property for sale and surrounding areas like Olhão, especially among those seeking space and authenticity over buzz and nightlife.
With less development pressure, properties here also tend to hold long-term value well. It’s a solid option for buyers who want a quieter lifestyle without disconnecting completely from amenities.
What About the Buying Process?
The buying process in Portugal is fairly straightforward for foreigners, but it’s always recommended to work with a lawyer and a local agency. Costs typically include purchase tax (IMT), stamp duty, and legal fees, which usually come to around 6–8% of the property price.
Financing is available, but many international buyers opt to purchase outright. With demand growing and supply tightening in many parts of the Algarve, starting early, even just for research, puts you in a better position when the right property comes along.
Summary
The Algarve has long been a favourite for Brits looking for something different; suiting all ages, from young digital nomads to retirees. However, over the past 12 months, U.S. citizens have been jumping on the craze, for reasons such as cost of living and political uncertainty in the U.S.A., so if you’re thinking about it, book a trip and see it for yourself!
