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Where to Stay in the Algarve

The Quick Answer

Table of Contents

  • First time in the Algarve? We recommend you stay in Lagos or Faro
  • Planning an Algarve city break? Check out accommodation in Lagos and Faro
  • Bringing your whole family to the Algarve? Consider staying in Albufeira, Vilamoura, Portimão or Altura
  • Planning a romantic escape in the Algarve? You might enjoy staying in Carvoeiro or Tavira
  • Want to see all the historic sights of the Algarve? We recommend you stay in Sagres or Tavira
  • Planning a luxury break in the Algarve? Look at accommodation in Vilamoura
  • Want an escape to nature in the Algarve? Consider staying in Aljezur or Altura
  • Seeking resort life in the Algarve? Stay in Albufeira or Portimão
  • Want to explore the island beaches of the Algarve? Head to Olhão or Tavira

The Algarve is Portugal’s sunny southern coast, known for golden beaches, dramatic cliffs and pretty whitewashed towns. Spend your days swimming, surfing, hiking coastal trails or exploring historic towns, then kick back and relax with fresh seafood and a glass of vinho verde. Beyond the busy resorts, there are quieter fishing villages, sandy islands and endless wild coastline to discover.

A Visitor’s Guide to the Neighbourhoods of the Algarve

Algarve's neighbourhoods via Google mapsCredit Google Maps

Lagos is a good all-rounder, with a lively old town, boat trips around the Ponta da Piedade cliffs, and easy access to Praia Dona Ana and Praia do Camilo; there’s a broad mix of boutique hotels, apartments and family-friendly stays. Sagres is the place for wild scenery, surfing and dramatic Atlantic sunsets, with the Fortaleza de Sagres and Cape St Vincent nearby, plus laid-back small hotels and guesthouses. Aljezur suits walkers and surfers, with a ruined hilltop castle, sandy beaches and the wild Costa Vicentina; expect mostly small guesthouses and rural stays. Albufeira is the Algarve’s lively resort hub, with beaches, bars and restaurants, while Vilamoura revolves around its marina, golf courses and long sandy beach, with plenty of larger upscale resorts. Carvoeiro has a pretty clifftop setting, sea caves and coves, making it a natural choice for a relaxed coastal break with boutique hotels and resorts. Tavira is more traditional, with cobbled streets, tiled buildings and boat trips to Ilha de Tavira. Olhão is a working fishing town known for its markets and seafood, while Faro offers the region’s best dose of history, with a walled old town and access to the Ria Formosa. Portimão is livelier, with Praia da Rocha, boat trips and plenty of restaurants. Altura is quieter, with a long sandy beach and family-friendly hotels.

Lagos

Ideal for: Surfing, old town exploring, boat trips, coastal walks, beach holidays

Lagos

Lagos is a great choice for first-time visitors, families and couples who want a lively base with beautiful beaches on the doorstep. The historic old town is easy to explore on foot, with cobbled streets, pretty squares, restaurants and bars, while the harbour is the starting point for boat trips along the spectacular Ponta da Piedade cliffs and sea caves. Praia Dona Ana and Praia do Camilo are close by, and there are lots more stretches of sand to discover along the coast. History lovers can visit the Forte da Ponta da Bandeira and former slave market, while keen walkers can follow the clifftop trails for some of the Algarve’s best coastal views. With a good choice of restaurants, a relaxed evening scene and plenty to do without needing a car every day, Lagos is an easy-going Algarve base. There’s a good mix of boutique hotels, family-friendly resorts and stylish apartments, particularly around the old town and waterfront. 

Pros and cons

  • Pros
    • walkable historic centre
    • stunning beaches nearby
    • lively but relaxed atmosphere
    • plenty of family-friendly activities
    • easy boat trips
    • great choice of bars & restaurants
  • Cons
    • can get very busy in summer
    • parking can be tricky
    • some beaches are accessed via steep steps

Did you know? Lagos is home to Ponta da Piedade, where wind and waves have carved the golden limestone cliffs into arches, caves and towering rock pillars.

Sagres

Ideal for: Wild beaches, history lovers, coastal hiking, sunset watching, surfing

Sagres

Sagres is a great destination for surfers, walkers and anyone who prefers wild Atlantic scenery to busy resort life. Sitting at the southwestern tip of the Algarve, it’s known for its dramatic cliffs, big beaches and strong surf, with several good breaks close to town. Visit the impressive Fortaleza de Sagres, hike along the clifftops or drive out to Cabo de São Vicente, the southwesternmost point of mainland Europe, for spectacular sunsets. There are a handful of relaxed restaurants and bars in town; the atmosphere is definitely laid-back rather than lively. Accommodation is mostly small hotels, guesthouses, and surf-friendly stays, though it boasts a very family-friendly resort too.

Pros and cons

  • Pros
    • excellent surfing
    • amazing sunsets
    • great clifftop walks
    • stunning wild beaches
    • laid-back bars & restaurants
    • dramatic Atlantic coastline
  • Cons
    • water can be very cold
    • limited nightlife
    • windy, especially outside summer
    • car is useful

Did you know? Cabo de São Vicente, just west of Sagres, was once believed to be the end of the known world. The Romans called the area “Promontorium Sacrum” (the Sacred Promontory), and considered it a place of great religious importance.

Aljezur 

Ideal for: Nature escapes, foodies, surfing, hiking, wild beaches

Aljezur

Aljezur is a small hilltop town that's known for its Moorish castle, whitewashed houses and surrounding countryside, with some of the region’s best wild beaches nearby. Praia da Amoreira and Praia da Arrifana are favourites for surfing and swimming, while the Rota Vicentina offers beautiful coastal walks through the Costa Vicentina Natural Park. Foodies can also look out for local sweet potatoes, a speciality of the area. There are small guesthouses, boutique stays and rural retreats here, rather than big resort hotels.

Pros and cons

  • Pros
    • peaceful, rural setting
    • good for nature lovers
    • less touristy than resort towns
    • excellent surfing
    • great coastal hiking
    • Moorish castle & old town
  • Cons
    • Atlantic coast can be windy
    • car is useful
    • limited nightlife
    • hilly in parts

Did you know? Aljezur’s sweet potatoes have Protected Geographical Indication status, meaning they’re officially recognised as a regional speciality.

Albufeira 

Ideal for: Family holidays, water sports, resort-style stays, beach days, nightlife

Albufeira

Albufeira is a classic resort town, making it a good choice for families, first-time visitors and anyone who wants restaurants, beaches and nightlife close at hand. The whitewashed Old Town has cobbled streets, a sandy beach and a lively mix of cafes and bars, while the famous Strip is where to head for late nights and a younger crowd. Spend the day swimming at Praia dos Pescadores, try water sports or take a boat trip along the coast to spot caves and dolphins. Albufeira has lots of family-friendly resorts and all-inclusive hotels around town, as well as plenty of apartments and affordable stays. 

Pros and cons

  • Pros
    • excellent nightlife
    • family-friendly attractions
    • walkable Old Town
    • huge choice of beaches
    • plenty of water sports
    • boat & dolphin watching trips
  • Cons
    • very busy in summer
    • noisy around the strip
    • beaches can get crowded
    • can feel heavily resort-focused

Did you know? Albufeira’s name comes from the Arabic “Al-Buhera”, meaning “castle of the sea”. The town was an important Moorish settlement before it was taken by the Portuguese in 1249.

Vilamoura 

Ideal for: Golf holidays, luxury breaks, family holidays, beach days

Vilamoura

Vilamoura is best suited to golfers, families and couples looking for a beach break with plenty going on. The marina is the heart of the action, lined with restaurants, bars and boat trip purveyors, while the long sandy Praia da Falésia is ideal for swimming and beach days. There are five golf courses around the resort, plus tennis, cycling and water sports for active travellers. History lovers can visit the nearby Cerro da Vila Roman ruins, while evenings are perfect for a stroll around the marina. The area is largely made up of upscale resorts, golf hotels and smart apartments, with lots of family-friendly options. It’s less traditional than towns such as Tavira, but very convenient for a simple Algarve holiday.

Pros and cons

  • Pros
    • excellent golf courses
    • lots of boat trips
    • long sandy beaches
    • lively marina
    • family-friendly activities
    • good cycling routes
  • Cons
    • more expensive than many Algarve towns
    • golf dominates the area
    • busy in peak summer
    • can feel very resort-focused

Did you know? Vilamoura’s marina was the first in Portugal to receive the prestigious Blue Flag award. Today, it’s one of the largest leisure marinas in Portugal, with space for more than 1,000 boats.

Carvoeiro 

Ideal for: Sea caves, couples' breaks, boat trips, beach holidays, cliff walks

Carvoeiro

The former fishing village of Carvoeiro is centred around a sandy cove, surrounded by whitewashed houses, restaurants and cafes. Follow the clifftop boardwalk to Algar Seco for sea caves, rock pools and lovely coastal views, or take a boat trip along the coast to see the famous Benagil Cave. There are several beaches nearby, including Praia de Carvalho and Praia do Paraíso, although many involve steps down the cliffs. Accommodation ranges from small boutique hotels and guesthouses to family-friendly resorts, with plenty of villas and apartments too. It’s quieter than Albufeira but still has enough going on for an easy evening out.

Pros and cons

  • Pros
    • good choice of beaches
    • relaxed evening atmosphere
    • pretty seaside setting
    • walkable village centre
    • stunning cliff walks
    • excellent sea caves nearby
  • Cons
    • steep hills & lots of steps
    • very busy in summer
    • limited nightlife
    • some beaches are difficult to access

Did you know? The cliffs around Carvoeiro are home to the spectacular Algar Seco, where the sea has carved tunnels, arches and rock pools into the limestone. Look out for the “Boneca”, a rock formation with two natural openings that look like a doll’s eyes.

Tavira

Ideal for: Cycling holidays, culture breaks, foodies, island beaches, historic exploring

TaviraImage by ddzphoto from Pixabay

Tavira is a lovely spot for culture lovers, foodies and couples looking for a quieter, more traditional side of the Algarve. The town is known for its cobbled streets, tiled houses, pretty squares and historic churches, with the old castle offering views across the rooftops and the Gilão River. Spend a morning exploring the old town, then take the short ferry from Quatro Águas to the long sandy beaches of Ilha de Tavira. The nearby Ria Formosa is great for boat trips, birdwatching and cycling, while Tavira’s restaurants are particularly good for fresh seafood and local specialities. Hotels tend to be smaller and more characterful, with boutique properties, guesthouses and a few smart resorts.

Pros and cons

  • Pros
    • walkable old town
    • beautiful historic centre
    • great for cycling
    • excellent seafood restaurants
    • traditional Portuguese character
    • easy access to island beaches
  • Cons
    • beaches require a ferry or boat trip
    • quieter nightlife
    • can get busy in summer
    • accommodation can be pricey in peak season

Did you know? Tavira is known as the “Venice of the Algarve” thanks to the River Gilão, which divides the town before flowing towards the sea.

Olhão

Ideal for: Markets, boat trips, island beaches, seafood, Ria Formosa

Olhao

Olhão is best known for its colourful waterfront markets, excellent seafood and Moorish-influenced architecture, with the old town’s narrow streets and tiled houses fun to explore on foot. The real draw is the Ria Formosa; take a boat trip through its lagoons and salt marshes, or hop on a ferry to the sandy islands of Armona, Culatra and Farol for a day by the sea. Hotels are mostly small boutique properties, guesthouses and stylish apartments, rather than big resorts. Olhão has plenty of restaurants and bars for evenings out, but has a distinctly local feel.

Pros and cons

  • Pros
    • authentic fishing town atmosphere
    • fantastic food markets
    • walkable historic centre
    • good train connections
    • less resort-focused
    • easy access to island beaches
  • Cons
    • no beach in the town itself
    • some areas feel quite urban
    • limited nightlife
    • can be very hot in summer

Did you know? Olhão is famous for its distinctive cubic houses, a style influenced by North African architecture.

Faro

Ideal for: City breaks, culture trips, foodies, old town exploring, Ria Formosa

Faro

Faro is the Algarve’s capital and a great base for culture lovers and visitors who want a city feel, plus easy access to nature. The walled old town is the main attraction, with cobbled lanes, the cathedral, historic buildings and the Arco da Vila leading down to the waterfront. The nearby Ria Formosa Natural Park is just as appealing, with boat trips, birdwatching and sandy islands to explore. Faro also has a livelier local restaurant and bar scene than many of the Algarve’s beach resorts, particularly around the old town. Accommodation ranges from smart boutique hotels and historic guesthouses to affordable city stays, making it a useful base for exploring the wider region. The airport is close by, too, so getting here is very easy.

Pros and cons

  • Pros
    • rich in history & architecture
    • walkable historic centre
    • close to the airport
    • lively cafes & bars
    • boat trips to nearby islands
    • more local feel than resort towns
    • excellent local restaurants
  • Cons
    • no beach in city centre
    • can be busy in peak season
    • fewer large family resorts

Did you know? Faro’s Chapel of Bones is lined with the bones and skulls of more than 1,000 monks. Built in the 19th century behind the Igreja do Carmo, it was designed as a reminder that life doesn’t last forever.

Portimão

Ideal for: Family holidays, water sports, seafood, boat trips, beach holidays

Portimao

Portimão is a good choice for families, beach lovers and travellers looking for a lively resort with plenty of activities nearby. The city is known for its fishing and seafood, while the star of the show is Praia da Rocha, a huge sandy beach backed by dramatic cliffs and a promenade lined with restaurants and bars. Take a boat trip along the coast, try a variety of water sports or wander around the marina. History lovers can visit the riverside Igreja de Nossa Senhora da Conceição and the old town, while the nearby Alvor wetlands are great for walking and birdwatching. Accommodation ranges from large family-friendly resorts and aparthotels to more affordable city hotels and apartments. It’s busier and more built up than nearby Carvoeiro, but there’s lots to keep you entertained.

Pros and cons

  • Pros
    • huge sandy beaches
    • great water sports
    • boat trips along the coast
    • excellent seafood
    • family-friendly attractions
    • plenty of apartments & resorts
  • Cons
    • Praia da Rocha gets very busy
    • built up and resort-focused
    • nightlife can be noisy in summer
    • can feel crowded in peak season

Did you know? Portimão is home to the Autódromo Internacional do Algarve, one of Portugal’s major motor-racing circuits. The track has hosted Formula 1 testing and the Portuguese Grand Prix, as well as international motorcycle racing.

Altura

Ideal for: Quiet breaks, swimming, cycling holidays, families, beach days

Altura

Altura's main attraction is the long, wide Praia da Alagoa, with calm, shallow water that’s perfect for swimming and paddling. The town is small and easy-going, with a handful of restaurants, cafes and shops, while the nearby Castro Marim salt marshes and nature reserve are great for walks and birdwatching. You can also take a short trip to Vila Real de Santo António or across the border into Spain. There's a good variety of family-friendly hotels, apartments and holiday resorts here, rather than city-style stays.

Pros and cons

  • Pros
    • calm, shallow swimming water
    • easy to walk around
    • family-friendly atmosphere
    • long, sandy beach
    • easy trips to Spain
    • good for cycling
    • relaxed cafes & restaurants
  • Cons
    • little historic sightseeing
    • beach can be busy in peak summer
    • limited nightlife
    • car is useful

Did you know? Altura sits in the eastern Algarve, just a short drive from the Spanish border. From here, you can easily combine a Portuguese beach holiday with a day trip to Spain; the border is only around 20 minutes away by car.