Diversification in the Algarve: Now Catering to Every Lifestyle

Updated: March 21, 2025

The Algarve, home to more than 105,000 foreign residents, has long been celebrated for its quaint towns, golden beaches, and enviable quality of life. Around 20 percent of the population are expats, coming from a wide range of background, underlining the region’s popularity amongst all profiles, from digital nomads and families to property investors, surfers, and lifestyle buyers. That’s without mentioning the continued allure of the region amongst retirees seeking to enjoy their well-earned retirement in style.

Here, we’ll delve into the key trends in the Algarve right now, delving into areas of the Algarve that have long been favorites for expats. We’ll then jump into some areas that you may not be so familiar with, but that are set to be prime locations of the future. We’ll also provide some information on key trends that can be seen across the region, with sustainability and the growth of digital nomads set to take center stage.

Yes, with more areas of the Algarve moving into the spotlight, and a wider range of buyers setting their sights on this gorgeous part of Portugal, the Algarve is set to continue to be one of the most highly sought after coastlines in Europe.

Diversification typically leads to greater growth and profitability. With the Algarve’s property market showing no signs of slowing down – and properties appreciating in value year-on-year – we can safely stay that the Algarve is not going to buck this trend.

The Classic Hotspot Locations in the Algarve

Some regions in the Algarve are classics. Think of the Golden Triangle of Vilamoura, Vale do Lobo, and Quinta do Lago. Or Lagos, which outperforms itself each year, attracting more and more expats from all walks of life to its world-class beaches and stunning properties with their wide balconies and sea views.

Lagos

Lagos continues to be a magnet for a diverse crowd of expats, with many Americans now calling the city and area close by home. The town’s growing international community adds to its dynamic atmosphere and makes it easy to establish a close network of friends here. You’ll find a wide array of activities on offer, including golf, tennis, cooking classes, and water sports, with the mild climate making it possible to enjoy the great outdoors throughout the year.

There are also excellent international schools here, including the highly regarded Nobel Algarve British International School, making this part of the Algarve popular with families. Keen surfers are also very close to the waves of Sagres, a little further to the west, making Lagos a good base.

The Golden Triangle

As we’ve mentioned, the Golden Triangle—comprising Quinta do Lago, Vale do Lobo, and Vilamoura—in the Central Algarve remains a stronghold for luxury buyers. This area boasts high-end resorts, world-class golf courses, and top-tier amenities, making it a premium choice for those chasing exclusivity and strong investment potential.

Frequent travelers also have Faro Airport close at hand, making international travel easy. Properties here, as with much of the Algarve region, are set to continue to appreciate in value in the coming years, making an investment here a smart move.

Tavira

Tavira, an authentic slice of Portuguese culture in the Eastern Algarve, with its whitewashed houses with blue façades, is a treasured gem in Portugal, where you have the iconic Gilão River flowing through the city and Roman architecture transporting you back in time.

Tavira has been experiencing a surge in demand recently, particularly those seeking out a relaxed pace of life. Its close proximity to the Ria Formosa Natural Park and uncrowded beaches – such as Praia do Barril – make it ideal for nature enthusiasts.

Unsure where the perfect spot is for you? Check out our ultimate guide to Algarve real estate.

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Destinations on the Rise: Keep Ahead of the Trend

While many areas of the Algarve have long been in the spotlight, some are stepping out from behind the curtain. Below, we share with you some of the top locations to invest in right now. These are the areas that are all set to come into their own over the next few years.

Aljezur, top of the list for digital nomads and surfers

The area around Aljezur, located on the western coast just north of Sagres, is gaining traction among surfers and nature lovers looking for a less crowded part of the Algarve. Its rugged coastline and unspoiled beauty offer an off-the-beaten-path experience, while property prices here are also much more affordable than in other, more popular areas. The town is also attracting digital nomads drawn to its laid-back lifestyle, and there is a steadily emerging remote work community.

Inland Algarve, ideal for families

While the Algarve is best known for its endless, beautiful, coastline, if you venture inland, you’re in for a treat. Inland areas like Silves, in the Central Algarve, are becoming increasingly attractive to those seeking larger properties and a quieter lifestyle. Perfect for families in search of larger properties with gardens, you’ll find many lovely properties on the market. What’s more, compared to what you would pay for similar types of property in other Western European countries, you’ll find you’ll be able to stretch your money much further.

Castro Marim and the Eastern Algarve taking center stage

The Eastern Algarve is undergoing a remarkable rise in popularity, not least Castro Marim, which has seen prices rise considerably over the past couple of years. This boost in demand is driven by Castro Marim’s proximity to Spain, excellent golf courses – such as the Castro Marim Golfe & Country Club – and the region’s high quality of life.

Looking to the future, the Eastern Algarve is poised for considerable growth as property buyers come to see the potential of this largely unspoiled area – and the beauty and authenticity that buying property here can offer.

Other Emerging Trends

General trends for the Algarve region as a whole are coming more clearly into fruition, with a greater focus now on sustainability. Alongside this, eco-tourism has taken off across the whole country, from Portuguese wine tours to boutique stays in the depths of the Portuguese countryside.

Alongside this, we’ve also noticed a massive surge in digital nomads focusing on the Algarve region, in areas such as Aljezur (as we’ve mentioned), but also across southern Portugal as a whole.

Sustainability

Sustainability is playing an increasingly important role in the Algarve’s property market, becoming the norm instead of the exception. Buyers are seeking homes that incorporate eco-friendly features, from solar energy to sustainable building materials with increased demand for smart-houses, solar panels, and other energy-saving and renewable mechanisms.

Eco-Tourism

There is also a growing trend regarding eco-tourism, with more visitors than ever before seeking out opportunities to explore lesser-known parts of the country, and that are environmentally friendly. From sustainable vineyards and organic farms to boutique yoga and wellness retreats, if you are seeking to invest in a farm to turn it into a boutique homestay or invest in boutique homes, there is strong potential to secure a nice return on your investment.

The Digital Nomad Boom Comes to the Algarve

The Algarve’s appeal extends beyond holidaymakers and retirees these days. While digital nomads have been focusing their attention on Lisbon and Porto, the Algarve is increasingly in their sights.

And why wouldn’t it be. With a warm climate, activities galore, affordable living costs, and very good internet infrastructure, it’s a no-brainer.

Cities such as Lagos and Aljezur are developing co-working spaces and remote work-friendly communities, making it easier for remote workers to settle in. For investors looking to snap up property to rent it out longer-term, you’ll find that demand is on the rise.

This shift is contributing to the diversification of the region, bringing in younger, entrepreneurial residents who add to the Algarve’s growing international appeal. While Lisbon, Porto, and Braga are thought of as being the key tech hubs in the country, it comes as no surprise that the Algarve is also shedding its skin as a key tech center in its own right.

The Algarve Tech Hub and various startup-programs in the region is a testament to this.

Looking to Snap Up Your Dream Home

The Algarve – and the Algarve, Portugal, real estate market – is diversifying. No longer just a destination for sun-seekers and retirees, southern Portugal evolving into a multifaceted region that caters to a wide range of families, digital nomads, surfers, luxury property buyers, and more.

So, what are you on the hunt for? Buying property in the Algarve has ample opportunities to uncover. At Goldcrest, we specialize in helping buyers navigate the dynamic market. Whether you are seeking a modern apartment in Lagos, a countryside home close to Silves, or a villa by the coast in the quieter Eastern Algarve, we can find the perfect property that ticks all your boxes. Get in touch with us today!