Best Algarve Towns
Planning a trip to the Algarve and trying to decide where to stay? The Algarve region of Portugal is known for its stunning beaches, natural beauty, warm weather, and rich cultural heritage. It offers a wide range of activities, including water sports, golf, hiking, and exploring historic towns and villages. It is one of the most popular European beach vacation spots for a reason. You can stay busy visiting various site and towns, or just relax at some of the top beaches. Picking the best place to stay in the Algarve depends on what you want to do while you are in the region.
Best Algarve Towns
Lagos: Lagos is a popular tourist destination with its beautiful beaches, historic center, and vibrant nightlife.
Albufeira: Albufeira is a bustling town with a lively atmosphere and a wide range of restaurants, bars, and shops. It's also home to some of the best beaches in the region.
Carvoeiro: A great options for those looking for a smaller town that still has a large number of restaurant options as well as things to do to keep you busy.
For me, when choosing where to stay there are six key criteria are hotel and accommodations, cultural sites or what to do, restaurants, nightlife walkability/location and budget. For the Algarve, I have also added beaches because they have some of the best in Europe.
Lagos
Lagos is one of the most popular towns in the Algarve for a reason, it is a larger town and offers a great mix of things to do and see. It is located near some of the most beautiful cliffs in the region and offers multiple nearby hiking trails to enjoy the views. If you plan to visit the Algarve without a car, this is one of the best towns to stay as there is plenty to do in or near the city. Due to the number of visitors and town popularity, there are plenty of tours that pick up directly in town if you are looking to visit other places like the Benagil Cave. For a quieter Algarve experience, there are other towns that offer similar experiences with less crowds.
Hotels & Accommodations
Due to the size and beaches near town, Lagos has many hotels for all budgets. If you are looking to stay in town, Hotel Marina Rio is a great option and is budget friendly. They have a great deck to lounge on overlooking the marina and updated airy rooms. If you are looking to stay near the beach, Iberostar Selection Lagos Algarve and Vila Gale Lagos are great options, and only a 20 minute walk from central Lagos. If you are interested in beautiful cliffside views, Cascade Wellness Resort is a 5 star hotel located near the cliffs and walking distance to Ponta da Piedade. Belmar Spa & Beach Resort is also a great option especially for larger groups as it offers two and three bedroom apartment options.
Cultural Sites & What to Do
Lagos is one of the best towns in the Algarve with a number of things to do in town or right outside of it. Ponta da Piedade is located in Lagos and offers an iconic view of the cliffs jutting out of the ocean. You can climb down the stairs to the Lagos Grotto and take a quick private boat ride out on the water (Tip: Make sure to bring Euros as they only take cash). Alternatively you rent kayaks and explore the cliffs on your own or with a kayak tour directly from town. Old Lagos is the historic center of the city and is full of whitewashed houses and patterned streets. It is a great place to explore and grab lunch or dinner. There is a local winery just outside of town that offers beautiful views of the vineyard and ocean, Falesia Wine.
Restaurants
Lagos is a larger town in the Algarve and has a large variety of restaurants to choose from, both in cuisine but also budget. Be sure to stop by the Pearl Food Trailer located in the marina, it a great spot for lunch along the water and is very affordable.
Nightlife
If you are looking for a town with a vibrant nightlife scene, Lagos is a great town for you. There are a large number of bars that take on a nightlife feel the later in the evening it gets and stay open until 4am. If you are looking for a louder place to dance and party top picks are InsideOut,The Tavern and Bon Vivant Nightclub. For a more laid back feel, top picks are Mar D’Estorias Rooftop Terrace and ZanziBar.
Walkability & Location
Lagos is one of the most walkable towns in the Algarve. Beaches, cliffside hikes, and water activities are all walking distance from the town. The location allows for easy day or half day trips to other popular areas like Sagres and Benagil Caves.
Beaches
There are some amazing beaches right in or near town. Praia do Camilo is next to Ponta de Piedade and is a beautiful secluded beach at the foot of the cliffs. It is a climb to get there with 200+ steps down a sturdy wooden stairway). But the views as you descend are well worth it! Another beach for those that don’t want to hike to the beach is Meia Praia, it large and curls gently around the bay. This is a great option to relax all day as there are a number of restaurants right off the beach.
Budget
Faro is great on any budget. There are a number of Airbnbs and budget friendly hotels but also 5 star options. The same can be said for restaurants. The town boasts a number of very cheap options, but also offers some more expensive restaurants.
Albufeira
Albufeira is a beautiful beach town located in the central coast of the Algarve. Unlike some of the other towns, the beach and city center are one and the same, and there are a number of hotels right on the water. Albufeira is the largest resort town in the Algarve and boasts a number of activities and a lively holiday atmosphere. Albufeira is one of the most popular holiday destinations in the region, and can draw a lot of crowds. If you are looking for a lively nightlife scene for your trip, Albufeira is top of the list. For a quieter Algarve experience, there are other towns that offer similar experiences with less crowds.
Hotels & Accommodations
There is an endless list of great accommodations in Albufeira and since the beach runs right along the town there are some options that let you stay on the beach but also right in town. Rocamar Exclusive Hotel & Spa is located close to the town center but offers an infinity pool overlooking the beach and ocean. Hotel Alisios is a great option if you are looking for beach views as it is right on the ocean, but note there is no outdoor pool. INATEL Albufeira is a larger hotel located on the beach and offers a large outdoor pool. It is a little farther from the main area of town, but still less than a 10 minute walk. If walking to town is not important and you are looking for a more resort feel, TIU Blue Falesia is a great option and reasonably priced.
Cultural Sites & What to Do
Albufeira is one of the most bustling towns in the Algarve. There is a large flat stretch of beach perfect for enjoying the ocean, but as it is a popular town there are other options nearby like the theme park, Zoomarine Algarve. Similar to Lagos, because of the size and number of visitors to the town it is easy to book day trips to any of the Algarve sites. If you rent a car, it is about a 35 minute drive to the Benagil Caves and 45 minutes to Ponta de Piedade, two of the most iconic spots in the Algarve. Like other large towns in the Algarve there are many options for watersports and boat trips that are easy to book.
Restaurants
Albufeira is a popular town in the Algarve and has plenty of restaurants to choose from. Windmill Restaurant is a unique restaurant that is built within an old Windmill and offers amazing views and great wine pairings. It is very small and adults only so a reservation is a must. O Cabaz da Praia is a great moderately priced option located in old town overlooking the beach. Platinum - Wine & Tapas is a great option for tapas.
Nightlife
Albufiera is well known for it’s lively nightlife. What I love most is that there are nightlife options for everyone. If you are looking for more of a laid back intimate evening, Caso Do Cerro is a great option. This Moroccan-themed bar is located just on the edge of old town and offers great drinks as well as shisha. For those looking for an early night but want a view, Restaurante Praia de Coelha is a great option overlooking the beach, but does close around 10pm. Piccadilly Cocktail bar is located right in the heart of Old Town and offers a fantastic range of drinks at reasonable prices. During the early evening it is a great place to grab a cocktail but heats up later in the evening. It is a great place for nightlife, but I don’t recommend eating here as there are much better options. If you are really looking for a fun, loud, late night out, head to the Albufeira Strip. There are many options and you can hop in and out of them at your leisure. Wild & Co is a great option that usually has live music and a lively dancefloor, if you are looking for a club, there are a number along the strip, but Club Vida delivers an unforgettable party experience.
Walkability & Location
Albufeira is a great town for walking and especially for travelers that don’t rent a car. The train from Lisbon stops directly in town and there are plenty of companies booking half day or full day tours to the other areas of the Algarve like Sagres or the Benagil Caves.
Beaches
Albufeira has a large beach right in town which makes it a great option for people that want to be able to go grab lunch or a drink while enjoying the water. It is also close to one of the most well down beaches in the Algarve, Praia da Mahrina, which is a long stretch of sandy beach surrounded by limestone cliffs. The hike at the top (about 1 mile) offers amazing views of the turquoise waters and cliffs.
Budget
Albufeira is slightly more expensive that some other towns in the Algarve, but you can absolutely find places to stay and eat on a limited budtet. There are a number of Airbnbs and budget friendly hotels but also beachside hotels and full resorts.
Carvoeiro
If you are looking for a smaller town on the Algarve but still with plenty of restaurant options, Carvoeiro is a great option. It is centrally located along the coast and can get crowded in the summer, but not anywhere as busy as some of the larger towns. If you do stay in Carvoeiro I recommend having a rental car as there are not as many day trip options with pickup directly in town.
Hotels & Accommodations
As Carvoeiro is smaller there are not as many hotel options, but between Airbnb and the hotels, there are plenty of places to stay. This town has one of the best hotels in the Algarve that offers views on a reasonable budget. If you have the ability to splurge on your trip, the best option is Trivoli Carvoeiro. It is located just a 10 minute walk from the town center and is built right on the cliffside offering amazing views. A more budget friendly option is Castelo Guest House. The hotel is slightly more dated but offers beautiful views and is right in town at a reasonable price.
Cultural Sites & What to Do
Carvoeiro is a quieter town but there is still plenty to do. The beach is nestled in between to cliffside and is a great place to enjoy the ocean. Carvoeiro is centrally located in the Algarve and if you have rented a car, you can explore the Benagil Caves (15 minutes) and Lagos/Ponta de Piedade (35 minutes). The town is also home to the Carvoeiro Boardwalk, which is a small wooden boardwalk that offers beautiful views. During the summer there is a shopping market in the center of town right by the beach. There are various stalls set up from clothing, beachwear, jewelery and more. There are some watersports offered in town, but unlike other larger towns the options can be more limited.
Restaurants
Caviero has some amazing restaurant options. For Indian food with a view, Pani is a great option in town. This multi level restaurant offers view from both inside and out, but if weather permits try getting a table outside on the top deck for the best views. Just outside of town is Boneca Bar, a casual restaurant and bar that is located on the cliffside and offers great seafood options. It does require a number of stairs to get to, but is well worth the hike. It is also a great place to grab a drink in the afternoon or evening. For tapas, Taste Restaurante, is a great option that offers a wide variety of small plates as well as full entrees, it also has live music on Thursdays. Tapas da Vila is another great option, and located right on the beach.
Nightlife
Carvoeiro is much quieter and does not have as lively of a nightlife scene but there are still great options to enjoy an evening out. Bar Cocktail Garden is a great bar located off a quaint square and is popular with both tourists and locals alike. They only accepted cash last time I visited so make sure you have euros on you. Round up Saloon is a great late option (one of the only places open past 12am) they have live music and karaoke. BarSkybar 360 Carvoeiro Plaza and Boneca Bar are other great options for an after dinner drink but do close around 10pm.
Walkability & Location
Carvoeiro is a great town for walking as it is small and you can walk from one end of town to another in about 30 minutes. It also has a beach right in town. As it is smaller there are less options for traveling to the rest of the Algarve and I recommend either pre-book any tours or renting a car so you can explore the rest of the Algarve.
Beaches
There is a great beach right in town and Praia de Vale Covo is a short walk away and a great beach to explore in low tide. Some of the best beaches are located a short drive away; Praia do Carvalho is a small beach accessible via tunnels through the stone and Praia da Mahrina, is one of the most popular beaches in the region. Both are a 15 minute drive away.
Budget
Carvoeiro is a very affordable town in the Algarve. It has affordable hotel and Airbnb options, but also offers beautiful resorts and hotels. There are also restaurants to meet every budget, from cheap eats to more expensive options. Similar to most towns in the Algarve, you can have a great experience with a limited budget.