Algarve is the name of Portugal’s southernmost region which includes the entire wonderful south coast, dotted with beautiful beaches. However, it stretches for about 150km, so to figure out where it’s best to stay in Algarve based on your tastes and goals, you’ll need some tips!
In this guide, we’ll therefore take a detailed look at the main urban centers to discover which is the best area for you to stay in Algarve.
Disclaimer: given Algarve’s size, renting a car is essential; staying just in one spot (even if moving around by public transport where possible) in this region is a waste. Most of the attractions and the most beautiful beaches in Algarve are only reachable by car, and most of the coast has climbs and descents that can sometimes be challenging (learn here how motorways in Portugal work).
Map of areas to stay in Algarve
Let’s start with a map of Algarve showing the areas we’ll talk about. This map shows the terrain relief: by zooming in on the area you’re interested in, you can better assess any slopes.
The yellow and green pins show some of the most beautiful beaches in Algarve.
Let’s now look at the pros and cons of each area for staying in Algarve!
Albufeira
Pros: well-served area, heart of Algarve’s nightlife, excellent base for getting around, beach right in front;
Cons: there are steep climbs and descents;
Let’s start our review of areas to stay in Algarve with one of the most popular: Albufeira.
The town of Albufeira is quite a touristy area but without feeling too “fake”; tourism (as in the rest of Algarve, for that matter) is mainly English-Irish but not exclusively. It’s a complete town, you’ll find all necessary services, supermarkets (like Lidl and Aldi), and anything else you might need.
Staying in Algarve in Albufeira is the winning choice for those who also want nightlife. In fact, in Albufeira, there are not one but two areas entirely dedicated to nightlife, which I’ll tell you about shortly. The Albufeira area is, however, large enough to leave plenty of space for those who want to sleep without hearing a pin drop.
Furthermore, Albufeira is located right in the middle of the Algarve region, allowing you to travel both east towards Lagos and west towards Faro with similar travel times. Keep this in mind also based on the purpose of your holiday, especially if you’re going there to visit the region’s most picturesque beaches, many of which are located between Lagos and Albufeira.
Some activities you may like, before going on with the article:
Staying in Albufeira, however, is not recommended for those who don’t like climbs and descents. The town is indeed located in an area with multiple slopes, even just a few steps from the coast.
It’ll make you smile to know, for example, that on the beach in front of Albufeira’s center, Praia do Peneco, there’s an elevator on one side and escalators on the other leading to the elevated promenade avenues.
Nightlife in Albufeira
Nightlife in Albufeira goes on in two areas:
- right in the historic center (also called “Old town”): not just for night owls but also for those who prefer just to have a drink in the square’s bars or take a walk along the avenues that end at the illuminated beach promenade;
- a few kilometers further east, Avenida Sa’Carmeiro (also known as the “Strip”) and its immediate surroundings, offer almost 1 km of different bars and disco-bars; this area is more recommended for those who want to party after midnight.
The nightlife in these areas of Albufeira during the summer months is busy throughout the entire week. On weekdays, it’s almost entirely frequented by tourists, mostly between 20 and 30 years old, but there are also older groups. On weekends, local Portuguese people also come, creating a more crowded and different atmosphere compared to previous days.
The type of venues you’ll find are mostly bars and disco-bars, some with 2 floors, a real godsend for those who appreciate low-key environments without needing to pay an entrance fee and that allow you to move from one to another based on the music and inspiration.
Although Albufeira isn’t a particularly famous destination, the mentioned avenues have so much choice they could shade those in Maiorca or other much more well-known islands.
Where to stay in Albufeira
The Albufeira area deserves a more detailed map to better understand where it’s best to stay based on your needs.
- The areas enclosed in the brown polygons represent the nightlife avenues: to the west, the heart of the “Old Town”, suitable for both young and older people, and to the east, the “Strip” Avenida Sa’Carmeiro, only recommended for young people looking to stay out late. Staying in Albufeira in these areas means being in the heart of the nightlife but also a good chance of hearing noise at night.
- The area in the red polygon represents the entire “Old Town”, a flat area for staying in Albufeira without facing major climbs and descents to move between the center and the beach in front. The Old Town is quite an expensive area.
- The yellow area area is elevated above the sea and has climbs and descents, some of which are quite steep.
- The green area has predominantly residential complexes and villas.
Finally, you’ll find some free parking spots indicated on the map to reach the center by car if you’re staying far away.
Outside the colored areas, it can become inconvenient if you’re only moving around on foot due to the slope and the main road. However, if you have a car, don’t hesitate to book out there too if you find a good price and enjoy a quiet and cheaper sleep (I did so).
In the Old Town (historic center):
- Hotel Sol e Mar: elegant 4-star with private balcony with sea view, wifi, pool, breakfast, bike rental option, and airport shuttle;
- Son of a Beach Hostel: hostel in the heart of the center with excellent reviews offering dorm beds or private rooms with bathroom. Organizes guided tours and can rent bikes, cars, or provide airport transfers;
- Vila Recife Hotel: 2-star with competitive prices and some rooms equipped with a bathroom with a bidet for those who always miss it abroad. Wifi, 24h reception, A/C, pool, and airport shuttle option;
Nearby, if you have a bike or car and/or enjoy walking:
- Albufeira Sol Hotel & Spa: 4-star property in a quiet location with SPA and wellness center, all-inclusive option and airport shuttle, restaurant, evening entertainment, wifi, and free parking;
- Villa Cerro, where I stayed: basic but decent rooms with private bathroom, shared living room, kitchen, and terrace. It’s about 3km from the center, you need a car (and some parking ability);
- Cerro da Marina Hotel: set in a landscaped garden, it offers elegant rooms, pool, wifi and free parking, SPA and wellness center, pet-friendly;
- Sao Rafael Atlantico: a very green 5-star near the beautiful Sao Rafael beach, with wifi, free parking, gym, pool, SPA and wellness center, breakfast and dinner option.
Lagos
Pros: beautiful town, best known for surfers, beautiful beaches at short distance;
Cons: it takes time to get to the easternmost areas of Algarve.
Another of the most recommended areas for staying in Algarve is definitely Lagos.
Staying in Lagos means being in a small but complete center that has all the services and where an evening stroll will leave you satisfied, whatever your age.
Lagos is a well-known area for surfers, as we are almost at the westernmost tip of Portugal towards “open ocean”. This is one of the reasons that makes Lagos a young environment with numerous hostels in the center.
The center of Lagos is almost flat, so no hassle if you don’t like slopes or are pushing strollers, while moving towards the coast you’ll go up a headland and then down again to the beautiful beaches of the area, a couple of which are within walking distance.
Most of the beaches face east, so being sheltered from the ocean’s push, they can be very calm on sunny days. Don’t miss some of the most beautiful in the region like Praia Do Camilo and Praia Dona Ana or the view from the headland of Ponta da Piedade.
One disadvantage of staying in Lagos, however, is the distance to the rest of Algarve. If you plan to travel east often, especially to Faro, Tavira, and the Ilhas, you’ll have to be in the car for over an hour to get there, slightly less via the motorway.
You may like: How Portuguese motorways work
- HI Lagos – Pousada de Juventude: hostel right in the center at unbeatable prices for those traveling on a really tight budget: from dorm beds to rooms with bathroom, wifi, and breakfast included;
- Hotel Montemar: 3-star with A/C, balcony, wifi, breakfast, and parking option, 24h reception;
- Aqualuz Lagos Hotel & Apartments: apartments for groups of 2 to 6 people, also accessible for guests with disabilities, pool, fitness and wellness center.
Carvoeiro
Pros: less known and probably cheaper area, beautiful ocean view;
Cons: small town beach, sloping avenues.
Carvoeiro is a small village between Lagos and Albufeira that deserves a mention for at least a couple of reasons.
First of all, if you happen to be there during high season or find other places full, choosing the quiet town of Carvoeiro to stay in Algarve could save you some money.
Furthermore, if you’re traveling in this area in June, the Carvoeiro Black & White night takes place every year, an incredible town festival where the entire center (including the town beach) is reserved for this event with street music, performances, DJ sets on about ten stages with different music genres, all outdoors.
A free admission party, where you’ll find people of all ages, from children to the elderly, from late afternoon until late at night. The recommended dress code (but not mandatory!) is black and/or white, hence the name “Black & White”.
In Carvoeiro, you’ll find a small beach that’s nothing special compared to some of Algarve’s masterpieces, but in the evening, if you stroll along the avenues adjacent to the beach, it can offer you some beautiful views overlooking the beach and the ocean. The town isn’t perfectly flat, so staying in Carvoeiro might not be the best choice if you don’t like slopes or if you’re pushing strollers.
Finally, right near Carvoeiro begins the Seven Hanging Valleys Trail, a path that runs along the cliff tops for several kilometers of coastline and allows you to enjoy enchanting views of the sea and caves.
- Hotel Carvoeiro Plaza: in the heart of Carvoeiro and a few steps from the beach, this very elegant hotel offers double rooms with bathroom, A/C, wifi, buffet breakfast included;
- Castelo Guest House: built on the raised cliff flanking Carvoeiro beach, it’s pet-friendly, offers an excellent ocean view, wifi, and free parking.
Quarteira – Vilamoura
Pros: might be more affordable if other areas are full, quiet area for those seeking relaxation, fairly flat location;
Cons: The beach in front isn’t among the most picturesque.
Quarteira is a small urban center by the sea about 10 km east of Albufeira. Staying in Quarteira could be an option to consider if you’re traveling in high season and having trouble finding available accommodations elsewhere.
Furthermore, Quarteira could be a recommended choice for those who prefer to stay in Algarve away from the hustle and bustle of major centers while still having main services (markets, beach services) available. There’s also a marina in the west part of the center with numerous restaurants and bars for a few drinks or an evening stroll.
Adjacent to Quarteira is the Vilamoura area, basically a quiet network of residential complexes and holiday villas for those looking for peaceful and somewhat upscale solutions.
In Quarteira, nightlife is very limited. Moreover, the beach in front of this area is a classic straight sandy beach, which, while not ugly, is nothing compared to the various beautiful beaches of Algarve.
- Hostel Conii & Suites: hostel built in a renovated 1896 building, with excellent reviews, dorm beds or private, soundproofed rooms with bathroom, wifi, and breakfast included, shared kitchen, all at great prices;
- Zodiaco hotel: modern rooms at competitive prices with private bathroom and A/C, pool, wifi, and breakfast included;
- Crowne Plaza Vilamoura: renowned 5-star near the marina with sea view, elegant soundproofed rooms with balcony, bidet, restaurant, gym, SPA and wellness center, wifi, A/C, and breakfast;
Faro
Pros: interesting for those who appreciate a small historic city;
Cons: beaches reachable by boat or car; far from Lagos, Albufeira, and the most beautiful rocky beaches.
Staying in Faro, the main city of the Algarve region, where the only airport in southern Portugal is also located, is another option for staying in Algarve.
Faro is a historic city still partially enclosed by walls, which can keep you entertained for an entire day if you appreciate historic cities and haven’t come to Algarve just for the sea.
In Faro, in fact, we find still intact medieval gates like l’Arco da Vilauna, cathedrals and churches including the Igreja do Carmo which contains the Capela dos Ossos, a chapel whose walls and ceiling are covered with bones and skulls apparently belonging to monks.
In the city of Faro, you won’t have difficulty finding all the services you need, as it’s the region’s largest city.
Staying in Faro, however, also has some disadvantages;
- If you plan to visit the most beautiful and renowned beaches on the coast between Lagos and Albufeira, you’ll have to drive several km;
- Furthermore, Faro overlooks the lagoon that separates the city from the famous ilhas, i.e., small islands reachable only by boat (except for the first one to the west behind the airport, which can also be reached by car via a bridge), which host long sandy beaches. So you won’t have a beach within walking distance in front of the city, only the port; anyway “ilhas” are absolutely worth visiting at least once.
- Finally, a trivial detail but one that might be relevant for some, the airport is just a couple of km from the city; if you’re bothered by hearing planes flying overhead, staying in Faro might not be the best choice for you.
Personally, I recommend keeping Faro as a day trip to visit the city or staying there for one/two nights if you want to spend a few days on the ilhas, then aiming for accommodation further west.
- Stay Hotel Faro Centro: 3-star with modern decor and soundproofed rooms, A/C, wifi, and parking and room service options;
- Lemon Tree Stay: B&B with excellent reviews, pet-friendly, soundproofed rooms, wifi and breakfast included;
Tavira
The town of Tavira is the easternmost in Algarve, just 15 km from the border with Spain.
Tavira, like Faro, also faces a small stretch of lagoon that needs to be crossed to reach the aforementioned “Ilhas” beaches. However, Tavira doesn’t just offer sea; in fact, if you prefer history over sand, you’ll find a small castle and a Roman bridge here.
Personally, I recommend staying in Tavira only if you’re planning an itinerant trip that might continue into Spain; otherwise, it’s better to choose an area a bit further west to stay in Algarve (since traveling to Albufeira/Lagos is over 100km by road) and keep Tavira as a day trip stop.
- HI Tavira – Pousada de Juventude: Hostel with great prices, dorm beds and rooms with private bathroom, A/C, wifi and breakfast included, rooms also suitable for guests with disabilities;
- Bea’s Bed & Breakfast: property with competitive prices with rooms for 1 or 2 people with wifi and breakfast included, parking option;
- Authentic Tavira Hotel: elegant soundproofed rooms with A/C for up to 4 people, balcony, wifi and pool, excellent reviews;
More traditional villages to stay in Algarve
Okay, you’ve read this far but you’re looking for something even more traditional and away from the chaos?
Then you could consider some smaller villages to stay in Algarve, such as:
- Olhão: it’s a small town a few km east of Faro, famous for its traditional fish market, open every morning from Monday to Saturday. The center of the town of Olhão is nice and reminiscent of nearby Faro. Being in the eastern part of Algarve, the same considerations made for Faro and Tavira apply if you plan to travel west often.
- Armação da Pera: a small center halfway between Carvoeiro and Albufeira, where you’ll breathe true peace since the loudest noise comes from children playing in the alleys below. Armação da Pera is well-positioned for visiting the most beautiful beaches between Lagos and Albufeira, and staying here could save you money compared to other areas of Algarve.
Where to stay in Algarve to visit the beaches
If your goal is beach life, it’s probably best to stay in Algarve in an area between Lagos and Albufeira, to easily visit all the most picturesque beaches and also to walk along some stretches of the Seven hanging valleys trail which allows you to enjoy the coast from the top of the sea stacks and see the famous Benagil cave from above.
Where to stay in Algarve with children
- Lagos,
- Quarteira,
- Faro if you like history and don’t mind not having the beach within walking distance
- Olhão or Tavira if you’re not very interested in the beach but prefer history.
If you have children, and especially if you need to push strollers, these locations are the most convenient for staying in Algarve as they have few slopes.
In Albufeira, on the other hand, unless you stay right in the center, there are many slopes, and if nightlife bothers you, it might not be for you. Carvoeiro is a particularly quiet area but it also has slopes that could make your holiday more tiring with strollers.
Where to stay in Algarve for young people?
Albufeira is the best area to stay in Algarve if you search nightlife.
However, in Lagos and Faro, you can also find some life, albeit more limited, mainly with bars and lounge bars.
Now that you know everything about where to stay in Algarve, I recommend reading the guide to highways in Portugal to avoid nasty surprises when you get home.
Finally … why not also consider the idea of visiting Lisbona in 3 days and finding accommodation in the Portuguese capital? 🙂
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