Where Is the Cheapest Place in the Algarve to Buy Property?

Introduction

While the Algarve is often associated with luxury resorts and high-end villas, it also offers excellent value for buyers with more modest budgets. Whether you’re a retiree looking to stretch your pension, a digital nomad seeking an affordable base, or a first-time buyer in Portugal, there are still places in the Algarve where you can find attractive property prices — without compromising on lifestyle.

In this article, we explore the most affordable places to buy property in the Algarve, and what kind of homes you can expect to find there.

What Affects Property Prices in the Algarve?

Several factors influence pricing:

• Proximity to the coast (beachfront = premium)
• Tourism popularity (higher demand = higher prices)
• Accessibility (near airports, transport hubs)
• Development and amenities (schools, healthcare, retail)

More rural, inland, or lesser-known areas typically offer lower prices — and often more space.

1. Monchique – Inland Charm at Lower Prices

Set in the Serra de Monchique mountains, this quiet inland town offers cooler temperatures, lush surroundings, and more traditional properties.

• Property types: Renovated village homes, quintas, plots
• Why it’s affordable: Inland location, limited tourism, rustic charm
• Who it’s for: Nature lovers, retirees, remote workers

2. Olhão – Eastern Algarve Value with Authenticity

Olhão has been gaining attention for its mix of affordability and rising charm. Located near Faro, it offers real Portuguese character, a working fishing port, and quick access to islands.

• Property types: Apartments, traditional townhouses, fixer-uppers
• Why it’s affordable: Historically overlooked, but improving fast
• Who it’s for: Culture-seekers, budget-conscious expats

🔗 Related: Best Places to Buy Property in the Algarve

3. Portimão (Outskirts) – Space and Deals Beyond the Center

While Portimão itself is busy and more developed, its outskirts and neighboring areas like Alvor or Mexilhoeira Grande can offer great deals.

• Property types: Older villas, townhouses, small apartment blocks
• Why it’s affordable: Large inventory, mixed demand, inland options
• Who it’s for: Families, local investors, year-round residents

4. São Brás de Alportel – Inland Living Close to Faro

Just 20 minutes from Faro, this inland town has a loyal expat community and a growing appeal thanks to its blend of countryside calm and central access.

• Property types: Village homes, plots, rustic villas
• Why it’s affordable: Inland, lesser-known, less tourist traffic
• Who it’s for: Retirees, families, lifestyle buyers

5. Castro Marim & Vila Real de Santo António – Eastern Edge Affordability

On the border with Spain, these towns are quiet, sunny, and ideal for buyers who want peace, views, and space at a fraction of the central Algarve prices.

• Property types: Apartments, small villas, townhouses
• Why it’s affordable: Eastern location, low-density tourism
• Who it’s for: Cross-border commuters, retirees, tranquil lifestyle seekers

Final Thoughts

There are still plenty of places in the Algarve where you don’t need a luxury budget to buy a comfortable home. While the Golden Triangle and major resort areas command high prices, inland towns and the eastern Algarve offer a more affordable — yet equally rewarding — property experience.

Need help identifying where you can get the most value for your budget? We help buyers find real opportunities across the Algarve, including off-market and under-the-radar deals.