Known for its golden sandy beaches, good tourism infrastructure, and friendly weather all year round, it is not a surprise that the Algarve, in Portugal, is a sought-after destination for locals and tourists from around the world. And popularity comes at a price: according to the National Institute of Statistics (INE), over the first semester of 2023 alone, the average property prices in the Algarve increased by 16.6% compared to the first quarter of 2022. In fact, in the past four years, the price per square meter of properties still available in the region has increased by an astounding 57% – a 10 percentage point increase above the national market average in Portugal.

Thankfully, you don’t have to buy a property in the Algarve to enjoy its 100+ beaches and 155 km coastline. Although the cost of living in Europe have pushed princes up, including temporary accommodation, it is still possible to visit Portugal and stay in decent places charging reasonably affordable daily fees in the Algarve.

Here our readers share the places and areas they have chosen to stay while in the Algarve to make the most of this popular destination without emptying their wallets.

Olhos de Água for affordable boutique hotels

“I spent 12 days in Algarve while backpacking throughout Latin American and European cities. While searching through different hotel booking sites, I came across Velamar Boutique Hotel, in Olhos de Água, which cost me € 85 per day, which is reasonable given the number of amenities the hotel provides including an outdoor swimming pool, a spa, as well as game and meeting rooms.”

Shreya Patel – Marketing Manager at Lowest Flight Fares

Portimão for riverside tranquillity

“I typically head to Spain’s Costa Brava for a quick beach getaway. Last summer, I wanted to treat myself to a little luxury in a new location, so I decided upon the Jupiter Marina Hotel – Couples & Spa – in Portimão, Algarve. It is a luxurious 4-star hotel ideally positioned in Portimão, just a stone’s throw from the riverside and close to the  marina and beach. I particularly enjoyed the comfort of the rooms and the ambiance of the rooftop bar. Reasonably priced from €56, I found it almost half the price of other luxury accommodation in the area.”

Guy Sharp – Relocation Manager at Andorra Guides 

Ferragudo for timeless beauty

“Nestled between the vibrant cities of Lagos and Albufeira, Ferragudo unveils the essence of a quintessential Portuguese fishing village. During my visit last year, I found myself enchanted by the town’s authenticity, momentarily setting aside my camera to soak in the natural beauty that surrounded me. Positioned at the mouth of the Arada River, Ferragudo retains its timeless beauty, offering a tranquil riverside route. While there, also take time to visit Praia do Pintadinho Praia dos Caneiros and the Ferragudo Lighthouse for breathtaking panoramic views.”

Olly Gaspar – Adventure Travel Publisher & Photographer

Daily rates for accommodation in Ferragudo start from €50.

Entire holiday homes in the Algarve can be booked from as little as £69 per day

Roja-Pé for family Airbnb near the beach

“I like to stay at nice places, but I try to avoid busy hotels whenever possible. And as someone who often travels with a family of six members, that is why I first look at Airbnb to see if large properties are available. This works out more economically than booking several rooms separately. For two years in a row, I have stayed at Casa D’ Cor, a spacious townhouse in Albufeira with a rooftop terrace, within walking distance from Falesia Beach and Olhos D’agua Beach. It is a very residential area so, besides feeling safe, I find it close enough to  bustling places during the day – yet still very tranquil for those looking to rest at night.”

Celine Allard – Retired teacher

Booking the entire Casa D’Cor, costs from £69 per day during the low season (November – March).

Porches for luxury within budget

“During my recent trip to the Algarve, I stumbled upon this fantastic spot called Vila Vita Parc by Azure Retreats. It’s a luxury resort offering 7 nights from £1,105pp, including flights, transfers and breakfast. It is Tucked away in the countryside with great views. If you are up for a bit of luxury that won’t wreck your budget, give Azure Retreats a shot – totally worth it!”

Maarten Cox – Director at Gecko Routes

Luz for luxury within budget

“As a travel and lifestyle writer with over 12 years of extensive travel experience, one of my most recent adventures took me to Luz, in the Algarve, where I stayed at the Luz Beach Apartments. These self-catering apartments appeal with their balance of comfort, luxury, and affordability. With fully equipped kitchens, spacious rooms, and stunning sea views, it was far superior to my average Airbnb stays. Being able to enjoy the golden sands within just a short stroll from my temporary home added a unique convenience and luxury that is rare to come by, especially without burning a hole in your pocket. Plus, with eateries and local marketplaces in the vicinity, I could truly immerse in the local culture and lifestyle.”

Amelia Thompson – Travel writer

Sea view studios at Luz Beach Apartments cost from €70 during the low season (November – March)

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