The Algarve region in southern Portugal is over 150 kilometres wide, stretching from the Spanish coast in the east to the Atlantic Ocean in the west. If you decide to come this way, the first question you might ask yourself is: where to stay ? There are so many options!
Since I live in the Algarve myself, I can tell you exactly where to stay in the Algarve depending on your wishes. Below you can read my tips for nice destinations in the Algarve!
Where to stay in the Algarve: a handy map
Below you can find a handy map of the Algarve with most of the major places. This will help you to orient yourself a bit where they are. Below the map you will find some of my recommendations.
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Now that you have an idea of where all the nice places in the Algarve are located thanks to the map above, you can read more information of each place below. I have also noted some characteristics, such as busy versus quiet, authentic versus modern and the range of activities. Then you will find a button that takes you to an even more extensive page per place. There you will find tips for hotels, sights and fun activities.
Hopefully these tips will help you decide where to stay in the Algarve!
Where to stay in the Algarve?
1. Albufeira
Discover popular Albufeira – the ultimate adventure holiday destination on Portugal’s sun-drenched southern coast. Enjoy breathtaking beaches, sample delicious local cuisine and dance the night away in trendy clubs.
Whether you are looking for a relaxing holiday with your family or an unforgettable time with friends, Albufeira has everything you need for a successful holiday.
2. Faro
Explore the beautiful coastal and capital city of Faro , located in the heart of the Algarve. Visit the charming historic centre, taste the delicious local cuisine along the waterfront and enjoy the breathtaking views of the Ria Formosa lagoon.
Take a ferry to one of the (deserted) islands or discover old Portugal in one of the museums.
3. Portimão
Be enchanted by the mix of unspoilt beauty along the coast and the energy of the atmospheric boulevard in Portimão – a lively seaside resort located in the southwest of Portugal.
Here you will find an interesting mix of old world charm and modern amenities, including beautiful beaches, trendy bars, museums and an excellent selection of water sports activities.
4. Lagos
Experience the perfect mix of sun, sea and history in the charming city of Lagos . Situated on the southern coast of Portugal, this lively resort offers beautiful beaches, historical sights and a lively nightlife.
Discover local culture in the old town and taste delicious Algarve cuisine along the quay or in the maze of streets. Explore the natural beauty of Ponta da Piedade and board a speedboat in search of wild dolphins.
5. Sagres
Escape the hustle and bustle of the city and discover the picturesque village of Sagres , located at the most south-westerly point of Portugal (and Europe!). Here you will find quiet beaches, spectacular cliffs and excellent surfing conditions.
Visit the historic fortress and enjoy the enchanting sunsets at the Sagres lighthouse. It is definitely worth the drive from the airport.
6. Silves
Travel back in time to the medieval town of Silves , located in the heart of the Algarve. This historic town offers a wealth of attractions, including an impressive castle, an archaeological museum and charming streets.
Visit Silves’ Gothic Cathedral, which dates back to the 13th century, and then treat yourself to a meal in one of the hidden restaurants. Nearby are vineyards where you can stop for a tour and wine tasting.
7. Loulé
Experience the perfect mix of sun, sea and history in the charming city of Lagos . Situated on the southern coast of Portugal, this lively resort offers beautiful beaches, historical sights and a lively nightlife.
Discover local culture in the old town and taste delicious Algarve cuisine along the quay or in the maze of streets. Explore the natural beauty of Ponta da Piedade and board a speedboat in search of wild dolphins.
8. Monchique
Head higher in the picturesque mountain village of Monchique , nestled in the hills of the Algarve. This peaceful and charming spot offers fantastic coastal views, beautiful nature walks and delicious local specialities.
The winding road up to the village is an adventure in itself and from the highest point in the Algarve you can see for miles to the coast.
9. Alvor
Experience the authentic Portuguese atmosphere in the charming fishing village of Alvor , located on the southern coast of the Algarve. Here you will find a beautiful harbour, picturesque streets and excellent fish restaurants.
Visit the 16th century Igreja Matriz de Alvor and walk through the beautiful dune area that separates this town from the ocean. Go kitesurfing in the bay or walk along the boardwalk through the lagoon.
10. Luz
Luz is the little sister of Lagos and is a nice starting point for a walk along the Rocha Negra. You can also snorkel here along the rocks and get a tan on the golden sand beach.
There are a number of excellent restaurants along the boulevard and the wide sandy beach ends at a beautiful and impressive rock formation.
11. Burgau
Head higher in the picturesque mountain village of Monchique , nestled in the hills of the Algarve. This peaceful and charming spot offers fantastic coastal views, beautiful nature walks and delicious local specialities.
The winding road up to the village is an adventure in itself and from the highest point in the Algarve you can see for miles to the coast.
12. Ferragudo
Experience the authentic Portuguese atmosphere in the charming fishing village of Alvor , located on the southern coast of the Algarve. Here you will find a beautiful harbour, picturesque streets and excellent fish restaurants.
Visit the 16th century Igreja Matriz de Alvor and walk through the beautiful dune area that separates this town from the ocean. Go kitesurfing in the bay or walk along the boardwalk through the lagoon.
13. Aljezur
In the far west of the Algarve you will find the Aljezur region with the village of the same name built against a hill. On top you can see the remains of an old castle and although it is a ruin, the view is still fantastic.
This village is the perfect place for a quick stop on your road trip along the west coast. Nearby Praia da Arrifana is a popular destination for surfers and sunbathers thanks to the shelter provided by the steep surrounding cliffs.
14. Tavira
In the far east of the Algarve lies the ancient city of Tavira on the Gilão River. The centre of this historic town is full of beautiful old buildings, cobbled streets and numerous sights.
Here you can experience true Portuguese culture during a Fado concert, in an atmospheric restaurant on the boulevard or in one of the 21(!) churches.
Even if you’re staying in the western Algarve, a visit to Tavira (and Tavira Island!) is definitely worth the drive.
15. Carvoeiro
In the middle of the Algarve coastline you will find the old fishing village of Carvoeiro . Here you will not find high-rise buildings and loud nightclubs, but atmospheric intimate restaurants and a beautiful beach with impressive cliffs on both sides that the Algarve is known for.
Carvoeiro is an ideal location to stay as it is close to a lot of beautiful sights such as the Algar Seco, the Benagil Cave and the wine region.
16. Salema
Salema is a small village in the west of the Algarve. This is where you go for a relaxing holiday, while in the neighbouring towns there is plenty to do if you want to be active for a day.
With a large beach and a handful of restaurants within walking distance, you can leave the car behind during a rest day.
Stay in one of the many apartments with sea views, or at the eco-campsite a little further away.
17. Vilamoura
Glitz and glamour can be found in Vilamoura . This all-inclusive sun worshipper’s favourite has a beautiful marina, two beaches within walking distance and more than enough restaurants to eat somewhere different every day for half a year!
Relax on one of the beaches or imagine yourself in the clubs, cafes or casino! This is probably the most modern place in the whole Algarve.
18. West coast
A visit to the Algarve is not complete without a day (or two) on the west coast . Endless beaches, towering cliffs and waves that will blow you away.
Walk or drive along the cliffs at Bordeira and stop for lunch in the ‘last’ village of the Algarve: Odeceixe.
The west coast of the Algarve is the final ingredient for a complete Algarve adventure.
19. Armação de Pêra
With a river delta full of flora and fauna on one side and impressive cliffs on the other, the charming Armação de Pêra is located in the middle of the adventure.
Stretch out on a sunbed by the coast, stroll along the boulevard and enjoy a cocktail on a terrace overlooking the sea. Watch fishing boats leave in the morning and get towed to the beach in the afternoon or walk along the water until you hardly see anyone.
20. Alte
The idyllic Alte is a small mountain village in the Algarve that can be found half an hour’s drive from Albufeira. As you zigzag through the narrow streets past whitewashed houses, it seems as if time has stood still. Although the center is no more than a few streets, you can taste the authentic Portugal here and it is worth a visit.
Alte is a nice stop during a day of road tripping through the interior of the Algarve.
21. Olhão
Less than 10 kilometres from Faro airport lies the coastal town of Olhão on the edge of the Ria Formosa nature park. From the air, it is the last place you see before your plane lands in neighboring Faro. Along the city’s boulevard, numerous restaurants await your visit and from the parks along the waters edge, you can see boats coming and going to the nearby islands.
22. Vila do Bispo
Situated on the edge of the Costa Vicenta nature reserve, Vila do Bispo is a nice stop for lunch or an overnight stay near the west coast.
Although there is not much to do in the village itself, there are several beautiful beaches within walking distance and you are on the west and south coasts in no time. For walkers this place is ideal, with several walking routes and viewpoints nearby.
23. Fuseta
The small town of Fuseta is located between Olhão and Tavira and is a nice stop for lunch and a walk along the quay. Here you will see dozens of fishing and pleasure boats moored, not all of which seem seaworthy!
The bay is a good place to learn to SUP or windsurf as it is sheltered from the ocean waves and currents.
Discover my tips for Fuseta on the next page.
24. Cabanas de Tavira
Located just a short ten minute drive from the old town of Tavira, Cabanas de Tavira is a relaxed little village on the edge of the Ria Formosa Natural Park.
Stroll along the jetty or visit one of the excellent restaurants for a good fish meal.
A water taxi will take you to Praia de Cabanas, a barrier island that is a one-minute boat ride from the dock.
25. Castro Marim
Castro Marim is one of the last villages in the Algarve before you reach the Spanish border. With less than 7,000 inhabitants, the pace of life here is a lot slower than in larger towns, but that is good for the atmosphere.
The village has a beautiful old church and is surrounded by salt pans, but the two absolute highlights are the centuries-old castle and the fortress!
Affordable car rental in the Algarve
The best way to discover all the beauty in the Algarve is with a rental car. By renting a car for a few days you can much more easily reach the sights and activities that are not always accessible by public transport.
By renting a car from Luzcar, you are helping a local family business run by Portuguese entrepreneurs. This way you support the local economy and you also get top service, which is often a stark contrast to the large corporations. Luzcar is based in Lagos, but they also offer cars at the airport in Faro. This way you can pick up the car immediately upon arrival and return it at the airport upon departure.
Luzcar’s reputation speaks for itself. Almost 5 out of 5 on Google Maps.
Where will you stay in the Algarve?
Hopefully this page has helped you choose a place to stay in the Algarve. If you have any questions or specific wishes, please leave a comment or send me an email. I will be happy to help you with tailor-made tips for your stay in the Algarve!
More of our local tips for your Portugal adventure
⭐ Check out our favourite sights in the Algarve on this page
⛵ Check out this overview of all activities you can do in the Algarve
🚗 This is the best car rental company in the Algarve
📌 Discover the top towns and cities to visit in the Algarve here
🏖 These are our favourite beaches in the Algarve
🛎 Get inspired with our local tips for accommodations in the Algarve