Algarve - chosen by expats to live in.
Expats are choosing the Algarve for its sunny climate, lifestyle, and diverse communities.
Coastal and inland areas offer different opportunities for living and investment.
A recent lifestyle report highlights the towns and communities across the Algarve that are most popular with international buyers and expats in 2026, providing valuable insight into property demand trends and long-term investment potential.
Large Expat Community: An established, international community from the UK, Germany, the Netherlands, and North America makes integration easier.
Cost of Living: Despite rising costs, it remains affordable compared to Northern Europe or the US, particularly in day-to-day expenses.
Safety & Healthcare: Consistently ranked as a very safe region with access to decent, improving healthcare services.
Infrastructure: Excellent for expats with international schools, golf courses, and easy access to Faro airport.
Expats continue to favour areas that combine quality of life, infrastructure, and accessibility.
Top Locations for Expats:
Lagos stands out for its vibrant year-round atmosphere, historic centre, and well-established international community.
Albufeira and the central Algarve remain appealing for buyers seeking resort-style living and proven short-term rental opportunities.
Portimão and Praia da Rocha offer a mix of urban convenience and coastal living.
While Carvoeiro attracts retirees and lifestyle-focused buyers drawn to a quieter, scenic environment.
Further east, Tavira and Cabanas are popular with those seeking traditional Portuguese charm and a slower pace of life.
While Loulé and Almancil continue to lead in upscale residential options near golf courses, international schools, and Faro Airport.
Even inland towns such as Silves are growing in popularity for buyers valuing affordability, space, and a more rural lifestyle.
Where are Expats in Portugal from?
Expats in Lisbon come from diverse backgrounds. The top nationalities of expats in Portugal are (based in 2024 data):
- Brazil: 204.7k expats (29.3% of total expats)
- United Kingdom: 41.9k expats (6% of total expats)
- Cabo Verde: 34.1k expats (4.9% of total expats)
- Italy: 30.8k expats (4.4% of total expats)
- India: 30.2k expats (4.3% of total expats)
What this means for buyers and investors:
The Algarve is far from a one-size-fits-all market. Each area caters to different buyer profiles — from high-yield rental hotspots to lifestyle-focused residential zones. Understanding where expats are choosing to live offers a useful guide to future demand, resale potential, and rental resilience, helping buyers make informed decisions.
At Vernon Algarve, we help clients align their property purchase with both lifestyle goals and sound market fundamentals, ensuring long-term satisfaction and value in this dynamic region.
