What Property Buyers Often Get Wrong About the Algarve Market

Many buyers approach the Algarve property market with a clear vision but often based on outdated assumptions or incomplete information. The region has evolved significantly in recent years, and expectations don’t always match current market conditions, particularly in high-demand areas like Lagos, Portimão, and Carvoeiro. 

Here’s a breakdown of what property buyers often get wrong about the Algarve and what to understand before starting your search.

Is the Entire Algarve Really the Same?

One of the most common mistakes is assuming the Algarve is one homogenous area. While the Algarve is often marketed as a single destination, each area has distinct characteristics.

- Lagos offers a mix of modern apartments, history and popular beaches.

- Portimão is more urban and fast-paced, with larger developments and a busy marina.

- Carvoeiro is known for its peaceful feel and cliffside villas.

Each town has a different atmosphere, price range, and pace of life. It’s important to narrow your search based on how you plan to use the property holiday home, investment, or permanent move.

If you're unsure which area fits best, take a look at our available Algarve real estate for an overview of what's on the market today.

Are Bargain Prices Still Common in the Algarve?

Portugal still offers good value compared to countries like France or Spain, but the Algarve is no longer a “hidden gem”.

High demand especially in areas like Lagos and a limited number of quality homes have pushed prices up. Buyers coming in with expectations of "cheap" seaside homes often find themselves surprised.

The best opportunities now tend to come from acting quickly on well-located homes or focusing on smaller towns just outside the coast.

Is the Legal Process as Simple as It Seems?

Buying property in Portugal isn’t overly complicated, but it does involve legal steps that are often overlooked.

- Due diligence is key: making sure the property is correctly registered and free of debts.

- Licences for pools, extensions, or renovations must be in place - especially for resale homes.

- New buyers often don’t realise that the Golden Visa no longer applies to residential properties in high-density areas like the Algarve.

That’s why working with a local, experienced agent matters.

Are You Factoring In All the Buying Costs?

The purchase price isn’t the full story.

Additional costs typically include:

- IMT (property transfer tax)

- Notary and registration fees

- Legal fees

- Annual IMI (municipal property tax)

Many buyers don’t budget for these, or they only learn about them late in the process.

Do You Really Need Local Support?

Online platforms have made it easier than ever to browse homes, but nothing replaces local knowledge.

- Is the area quiet all year round or only in winter?

- Are there any hidden planning issues nearby?

- What’s the rental potential like outside peak season?

These are questions you can’t always answer online. A local agency like B&P Real Estate understands the area street by street. We can help you find the right property and negotiate the right price because we know the market inside out.