Albufeira

Albufeira is the Algarve's tourism engine, a high-volume resort market in 2026 where beach holidays, nightlife and short-let demand converge. Prices vary sharply by zone: central and beachfront stock sits well above the Algarve average of roughly EUR 3,400-3,600 per m2, while inland parishes such as Ferreiras start nearer EUR 3,080 per m2, offering relative value. Prime resort pockets and the Old Town can command EUR 5,000+ per m2. Average gross rental yields run about 4.5-5.6% on apartments, with net yields after costs nearer 2.8-3.3%, and peak-season short-lets lifting returns where AL licences allow. Tourist-heavy beach zones can see seasonal vacancy climb to 10%+, so location and licensing diligence matter. Portugal places no general restrictions on foreign buyers, EU and non-EU alike, but the real-estate Golden Visa route closed in 2023 and the NHR tax regime was replaced by IFICI+. Buyers must budget for IMT, stamp duty and increasingly restrictive short-let licensing in saturated tourist districts. Albufeira remains the region's most liquid rental market, with mid-range 2-bed apartments near the Old Town letting at EUR 1,150-1,350 per month long-term and far higher in summer.