What are the most sought-after areas in the Algarve for second homes?

The Algarve remains one of the favourite destinations for investment, attracting both foreign and national capital to the real estate and tourism sectors. Increasingly, there are more "secret" areas that are beginning to be sought after for investment in second homes. A study conducted by Engel & Völkers reveals the five most coveted areas in the region and what distinguishes them. So, what draws investors to these areas?

"In the Algarve, foreign investment still predominates, but we are observing a growing interest in lesser-known areas that offer a perfect balance of natural beauty, authentic culture, and tranquillity. They are gaining prominence on the map of investment in second properties, attracting those who value quality of life and the preservation of local traditions," says Margarita Oltra, Regional Manager of Engel & Völkers Portugal, as quoted in a statement.

Praia Verde

Praia Verde, located among the dunes of Sotavento Algarvio, "enchants with its tranquil atmosphere provided by the lush pine trees and contact with nature". The absence of buildings and the proximity to the beach make this place a highly sought-after destination, according to the consultancy firm. "This area is known for not having mass construction and for offering beachfront properties with a high degree of privacy. These characteristics, combined with the natural landscape, make Praia Verde a unique and highly attractive area for investors who value tranquillity and unspoiled nature," it reads.

Engel & Völkers

Galé

Galé is a prestigious area of Albufeira, known for its low-density construction and excellent beach access. "Properties in Galé are sought after for their prime location and tranquillity, away from busier areas but still close to all amenities. The absence of mass construction helps preserve the natural charm of the area. Investors are particularly attracted by the combination of stunning landscapes and the availability of luxury properties, some with sea views, making Galé a prime destination for second homes," notes Engel & Völkers.

Engel & Völkers

Porches

Porches stands out for its abundant nature and the famous Praia de Nossa Senhora da Rocha, one of the most iconic beaches in the Algarve. According to the study, "the stunning view from the Nossa Senhora da Rocha viewpoint offers a unique landscape over the Atlantic Ocean." Additionally, "Porches is a sought-after destination for those who appreciate serenity, natural beauty, and proximity to some of the most beautiful beaches in the Algarve."

Ferragudo

Ferragudo is a traditional fishing village that retains its authenticity and charm despite being a tourist area. The village offers a harmonious blend of local life and tourism, with its narrow streets and white-painted houses creating a picturesque setting. Ferragudo is less busy during the tourist season compared to other areas, providing a more tranquil, authentic, and serene experience. The proximity to both the sea and the Arade River adds extra appeal, allowing for a variety of water activities. "In this area, investors mainly seek properties for retirement or houses to renovate and enhance," reads the report.

Engel & Völkers

Alvor

Alvor enchants with its authentic atmosphere and tranquillity provided by the combination of an unspoilt beach and the "Ria de Alvor" nature reserve. Properties in Alvor offer ample privacy and stunning views, making it a popular choice among investors who value serenity and natural beauty. "The harmonious mix of seasonal tourism, foreign residents, and locals contributes to its unique and charming environment. In Alvor, similar to Ferragudo, investors mainly seek properties with various amenities for retirement or houses to renovate and enhance," reveals the estate agency.

Engel & Völkers

For more of the best places to live in the Algarve, consult our guide.