Every now and then, home buyers ask the illustrious question on social media about where in the Algarve to buy their new home. As a result, hordes of foreigners mention that they enjoy living in Lagos, Tavira, Lagoa, Ferragudo, Messines, São Bras, Olhão, Portimão, as well as the elegant resorts of Vale do Lobo and Quinta do Lago. All cities are mentioned, and the final take away is as useless as throwing a dart on the map of Algarve…

Of course, everybody is different and before deciding on an area, you need to feel the atmosphere. But there are also objective numbers that can help decide which areas are the best choices right now and beyond.

The Algarve is a relatively compact area, so all amenities – from deserted islands to Michelin-starred restaurants – are tops an hour away by car; the whole area is your backyard. But house prices vary significantly. Birds of a feather flock together so locations popular with expats are in high demand, but for a more authentic Portuguese experience, you might want to choose a typical working town.

The least expensive houses and apartments can be found in two municipalities in the Algarve with housing prices below the national median. These are Alcoutim (€750 per m²) and Monchique (€2,200 per m²), both located in the interior of the Algarve, further away from the oceanside.

Monchique is ideal for those looking for a more relaxed lifestyle, away from the stress of everyday life. Properties with lovely mountain views are actually quite affordable there, and the third most affordable municipality when it comes to property in the Algarve is São Brás de Alportel, with prices at around €2,400 per m².

If you are looking for an upcoming area, you might also want to consider Mértola. Although this quiet, charming, medieval town is officially in the Alentejo, the Algarve is never far away and the average house price here will come in at around €1,000 per m².

The areas we are talking about, and the associated property costs, are very different to those in the most sought after areas; houses in Loulé, for example, go for a median of €3.900 per m².

The term Golden Triangle is there for a reason…The municipality of Loulé offers a well-developed infrastructure, beaches, tennis schools, golf courses, shopping centres, churches, casinos, choice restaurants and much more.

Lagos is also popular with an average house price of €3,700 per m².. There is something for everyone here; a picturesque old town, a beautiful marina and miles of sandy beaches as well as beautiful bays in the postcard-worthy rock formations.

To make a definite decision on the area, you might also want to include tourism in your equation. After all, many property owners will use their second home as a source of additional income, by renting out to tourists. Buying a house in a popular tourist destination might be more expensive but it could in the long term be a better investment because of the higher rental opportunities. Looking at the average earnings with Airbnb, the most profitable Airbnb markets are Loulé, Portimão and Carvoeiro. Less profitable are towns like Olhão, Faro and Tavira.

Whether you want your new life under the sun to be filled with sea view, city life or nature, the Algarve has something for everyone! With so many amazing places to choose from, deciding where to buy your home in this region can be a difficult decision. The good news is that no matter where you end up, all areas are sure choices that will guarantee you a sunny and relaxed life style!