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Algarve Property Investment Guide

Discover property investment opportunities in the Algarve. Market trends, prices, and local insights.

Updated Jan 21, 2026475 words

Introduction

The Algarve, Portugal's southern coastal region, is Europe's premier golf and beach destination. With over 300 days of sunshine annually, stunning coastline, and established tourism infrastructure, the region attracts millions of visitors and has long been a favorite for property investors, particularly from the UK, Germany, and Scandinavia.

Overview

đź’ˇ Investment Opportunities

Beyond the modern resort developments, the Algarve has charming historic towns like Tavira, Lagos, and Silves with traditional properties ripe for renovation. Inland areas offer excellent value with quintas (rural estates) at competitive prices.

Key Areas

Lagos

Historic walled town with dramatic coastline, vibrant nightlife, and marina. Good mix of tourist rentals and permanent residents.

€3,500 - €5,000 per square meter

Tavira

Authentic Algarvian town known for preserved architecture, island beaches, and local character. Less touristy than western Algarve.

€2,500 - €3,500 per square meter

Loulé

Inland market town with authentic Portuguese atmosphere, Saturday gypsy market, and access to both coast and Serra do CaldeirĂŁo.

€2,200 - €3,000 per square meter

Silves

Historic capital of the Moorish Algarve with impressive castle, cork oak countryside, and excellent value properties for renovation.

€1,800 - €2,800 per square meter

Conclusion

The Algarve offers a proven property investment market with strong rental demand, excellent climate, and established infrastructure. While prime beach locations command premium prices, investors seeking renovation opportunities should look at historic town centers and inland areas where value remains compelling.