
The Algarve is full of charming towns and fishing villages that will have plenty of appeal for locals and visitors alike, Ferragudo is no exception. A fairly small town on the western border of Lagoa, Ferragudo is situated between the popular destinations Portimão and Carvoeiro. But what’s it like to live in Ferragudo permanently, and what makes it one of the best places to live in southern Portugal?
Is Ferragudo a nice place to live?
Ferragudo is a wonderful place to live, particularly for those who value a more authentic Portuguese experience. It’s a picturesque setting for visitors and retirees. Ferragudo was a village until 1999, where it took in some of the surrounding areas, but its newfound town status hasn’t seen it lose its quaint charm. Narrow, cobblestone streets wind through whitewashed houses with colourful doors and shutters, offering a picture-perfect backdrop for daily life.
Small village appeal
Its village-like atmosphere is what makes Ferragudo so attractive. While it has grown in popularity with expats and tourists in recent years, it hasn’t lost its character.
An improvement in local amenities has enhanced the town rather than detracted from its charm. Fishermen still haul in fresh catches each morning, and the town square is a lively gathering point for locals, where people meet for coffee, chat, and enjoy a slower pace of life.
Ferragudo offers the best of both worlds. It provides a quiet and peaceful living environment but is just a short drive away from larger cities like Portimão and Lagos, where you can find more extensive amenities such as shopping centres, hospitals, and international schools. Ferragudo is also well connected to the rest of the Algarve, making it a great home base for those who wish to further explore the region.

Does Ferragudo have a beach?
Yes, Ferragudo has several beautiful beaches! These are our top picks:
Praia da Angrinha
Praia da Angrinha is one of the village’s closest beaches, situated right next to the historic Forte de São João do Arade. This beach is particularly peaceful, with the nearby Praia Grande drawing most visitors. This makes it the perfect spot to enjoy the calm waters and quiet days in the sun.
Praia Grande
Located a short walk from the centre of Ferragudo, Praia Grande is considered the most popular beach in the area. This long, sandy beach stretches along the Arade River and offers fantastic views of the Marina de Portimão across the water. Praia Grande has plenty of beachside restaurants, cafes, and even a watersports centre.
Praia da Infanta
The smallest beach along the Arade riverbank, Praia da Infanta is largely untouched and generally quiet, likely because it’s not the easiest to access. A narrow trail along the cliffs between Praia Grande and Praia do Molhe leads down to the sandy shore. Timing is everything if you’re planning a visit to Praia da Infanta, with high tide covering the entire sandbank.
What is the population of Ferragudo?
Ferragudo is a small town often still called a village, with a tiny population of just 2,000 people. This makes it one of the smaller towns in the Algarve, but it also contributes to its intimate and welcoming community.
The small population means that visitors and new locals can expect a slower pace of life. Many expats are drawn to Ferragudo specifically because it doesn’t feel overcrowded, even during the summer tourist season.
Despite its small size, Ferragudo has everything you need for comfortable living, and the nearby town of Portimão (less than 5km away), provides additional services and amenities where needed.
Cost of living in Ferragudo
The cost of living in Ferragudo is generally lower than in some of the more popular tourist hubs of the Algarve like Lagos or Albufeira, although it can be higher compared to some other inland villages.
If you’re considering buying a house in Ferragudo, pricing can sit anywhere between 140k and 4.5m for those luxury homes with a sea view. Renting sits on a similar scale with pricing from 1200 euros per month.
Everyday expenses
Eating out in Ferragudo is fairly affordable, with meals at local restaurants costing between €10 and €20 per person. Fresh produce, fish, and seafood are abundant, making it easy to enjoy the high-quality local cuisine at a reasonable price. There isn’t a large supermarket in Ferragudo centre but there are several nearby options to choose from. Grocery prices are considered affordable and in line with most of Europe.
Utilities and transportation costs are typically lower when compared to other European countries, making Ferragudo an attractive option for those looking to live comfortably without breaking the bank.
Find out more about the cost of living in the Algarve

Where is the best place to live in Southern Portugal?
When it comes to quality of life, the Algarve is often considered the best place to live in southern Portugal, and Ferragudo is one of its hidden gems. A region celebrated for its year-round sunshine, scenic coastal landscape and welcoming community, it’s unsurprisingly a popular destination for expats, retirees, and anyone seeking a better work-life balance. Living in the southern Algarve means you’ll enjoy a warm Mediterranean climate, delicious local cuisine and the many amenities available in both tourist seasons and the quieter off-season.
Conclusion
Ferragudo has an undeniable charm. From its gorgeous buildings to its fishing history, it’s the ideal location for those enamoured by Portuguese history and the region's way of life. With its charming streets, beautiful beaches, and friendly, welcoming community, this small town provides a unique and authentic Portuguese living experience that’s just a stone's throw from larger cities. Whether you’re an expat seeking a quiet retreat or a retiree looking for a sun-soaked haven, Ferragudo has much to offer.