Prettiest Villages and Coastal Areas in the Algarve

Introduction

While the Algarve is famous for its golden beaches and warm climate, what truly makes it magical are the picturesque villages and coastal corners that seem straight out of a postcard. Whether you’re dreaming of a charming whitewashed village, a cliffside hideaway, or a cobbled fishing town, this guide highlights the prettiest places in the Algarve — perfect for a holiday home, a photography trip, or a peaceful relocation.

These areas aren’t just beautiful — many offer livability, local culture, and even investment potential.

1. Ferragudo – A Fishing Village with Postcard Views

Located across the Arade River from Portimão, Ferragudo offers timeless charm. Whitewashed houses, narrow lanes, and a hilltop church overlooking the bay make this one of the Algarve’s most scenic spots.

• Why it’s pretty: Riverside views, cobbled streets, traditional vibe
• Bonus: Peaceful, with growing interest from international buyers

2. Carvoeiro – Clifftop Beauty and Coastal Coves

Famous for its dramatic cliffs and intimate beaches like Praia do Carvalho, Carvoeiro blends natural beauty with a sophisticated air. The town remains compact and scenic, even with modern villas rising nearby.

• Why it’s pretty: Iconic cliffs, tiled town square, coastal trails
• Bonus: Popular but never too crowded

🔗 Related: What It’s Like to Live in Carvoeiro

3. Cacela Velha – Historic Minimalism with Ocean Views

A tiny village in the East Algarve, Cacela Velha overlooks the Ria Formosa lagoon and Atlantic beyond. With just a handful of houses and a 17th-century fort, it’s one of the most photographed places in Portugal.

• Why it’s pretty: Panoramic sea views, untouched feel, Moorish architecture
• Bonus: Near Tavira and unspoiled beaches

4. Tavira – Riverside Elegance and Tile-Fronted Charm

Tavira’s cobbled streets, Roman bridge, and traditional façades make it one of the Algarve’s most architecturally attractive towns. The relaxed riverside setting and palm-lined plazas enhance its beauty.

• Why it’s pretty: Historic buildings, riverfront cafés, pastel tones
• Bonus: Lively but tranquil, excellent for year-round living

5. Alte – Whitewashed Inland Village with Tradition

Set in the foothills north of Loulé, Alte is a true inland gem. It’s known for its fountains, natural spring pools, and white buildings with colorful borders.

• Why it’s pretty: Authentic architecture, quiet alleys, nature surrounds
• Bonus: Rare to find this atmosphere away from the coast

6. Lagos (Old Town) – Where History Meets the Sea

Lagos’s walled old town is one of the Algarve’s most photogenic urban areas, blending history, coastal views, and vibrant streets filled with cafés and shops. Outside the walls, cliffs and beaches await.

• Why it’s pretty: Historic architecture, marina, tiled façades
• Bonus: Combines charm with convenience and a vibrant lifestyle

🔗 Related: Living in Lagos: A Blend of Beaches, Culture, and Convenience

Final Thoughts

Beauty may be subjective, but in the Algarve, it’s everywhere — from sleepy hilltop villages to colorful seaside towns. Whether you’re looking for an idyllic setting to call home or a place to invest in a lifestyle-rich property, these locations deliver scenic value without sacrificing authenticity.

Want help finding a beautiful place to live or invest in the Algarve? We match buyers with character-rich homes in the region’s most picturesque settings.