Western Algarve
Houses and villas on the cliffs and in the villages between Lagos and Sagres, many with holiday rental licences.
Places
Lagos, Praia da Luz, Burgau, Salema, Vila do Bispo
Prices
€1.2M to €4.5M for houses
Distance
About 1 h to Faro airport
The houses you’ll find
Villas from the 1980s and 1990s are common, many of them updated since. Newer houses are mostly on the edges of Lagos and Luz. Sea views and walking distance to a beach set the price more than size.
Many houses here already hold an Alojamento Local licence for holiday letting, which transfers with the sale and is a large part of their value.
What to check before you buy
1980s construction
Check insulation, windows and roof. Many older villas are cold and damp in winter.
Rental figures
Ask for booking platform statements, not the agent’s estimate. We publish the statements we have checked.
Wind
The coast west of Burgau gets strong wind in the afternoons. A sheltered terrace matters.
Living there
Lagos is a year-round town with schools, a hospital, a marina and a train line. The villages to the west are quieter and more seasonal.
Faro airport is about an hour on the A22, and Lisbon about 2 h 45.
Questions buyers ask
Does the rental licence come with the house?
An Alojamento Local licence registered to the property generally transfers with the sale. Your lawyer confirms it with the municipality before the CPCV.
How many nights do houses let?
Good houses near Luz and Lagos let 150 to 200 nights a year. Casa Falésia let 182 nights in 2025.
Is it busy in winter?
Lagos stays open all year. Burgau and Salema are quiet from November to March.
Looking in this region?
Book a 30-minute call with the agent who covers it. We’ll tell you what’s for sale now, what’s coming up and what your budget buys.
