Property prices in the Algarve have risen 64% in the past five years, with Loulé — home to the renowned resorts of Quinta do Lago and Vale do Lobo — accounting for a significant share of this growth.
Over time, the area has become increasingly popular among the wealthy international community thanks to its unrivalled infrastructure, widespread use of the English language, and proximity to Faro International Airport some 20 minutes away.
This has shifted buyers’ perspectives, leading more families to relocate permanently to the Golden Triangle.
With its international hospitals, tennis clubs, golf courses, equestrian centres, international schools, golden beaches and 300 days of sunshine per year, the Golden Triangle commands the highest price per square metre in the Algarve region, and supply still falls short of demand.
However, the surge in prices is now pushing demand further inland to the hillside villages. For families seeking a villa near the coast in Quinta do Lago, Vale do Lobo or Vilamoura, the price tags can be prohibitive compared with the value they can find in the countryside surrounding the Golden Triangle.
As a result, many are turning inland to the hillside villages around Loulé as a more affordable alternative.
“The inland hills offer the perfect compromise: proximity to the lifestyle and amenities of Quinta do Lago and Vale do Lobo, but at a more accessible price point,” explains Filip Malmström, chief executive of ReCo.
Villages such as Vale Formoso, Ferrarias, Fonte Santa, Santa Bárbara de Nexe and Goldra are experiencing rising demand, offering spacious villas with panoramic views and privacy — all beyond the borders of the main resorts but still within 15 minutes of the Algarve’s golden beaches.
For buyers, this means they can remain close to international schools, golf courses, marinas and fine dining, without sacrificing access to the region’s most desirable lifestyle.
Hillside properties range from sprawling, traditional homes to delightfully contemporary townhouses.
Christina Hippisley of the Portuguese Chamber of Commerce in the UK, points out that the growing popularity of slightly more inland locations aligns with the current inward migration trends that Portugal is seeing.
She explains:“Portugal is welcoming families from the UK as they seek to relocate in pursuit of a better lifestyle. These buyers don’t necessarily want to be at the heart of the Algarve’s tourist crowds. They’re looking for peaceful locations within easy reach of good schools and everyday amenities, while still having beaches close to hand.”
The Moving to Portugal Show and Seminars, is organised by the Portuguese Chamber of Commerce in the UK, and takes place in London on October 16. More details here: https://London-MTP-2025.eventbrite.co.uk.
