Once a quiet fishing village perched atop majestic sandstone cliffs, Albufeira is one of the most popular holiday destinations on Portugal’s southern coast. There’s something for everyone here, whether you want to immerse yourself in the local culture in the Old Town, spend time in the sea or let your hair down and sip fine Portuguese wine. With its central location on the magnificent Algarve coast, it makes a fantastic base for exploring further afield, too. Deciding where to stay can be tricky, but luckily the travel experts at Plum Guide have all there is to know about Albufeira. What type of holiday you have will depend on which part of the city you base yourself. Before you jump on that flight, check out our guide on where to stay in Albufeira.

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Albufeira’s Old Town is a wonderful starting point for those visiting for the first time. While much of Albufeira has seen significant development, the Old Town still holds onto the charms and traditions which put this coastal city on the tourist map in the first place. Start your sightseeing with a stroll along the winding streets paved with beautiful tiles, passing whitewashed houses framed by vibrant bursts of bougainvillaea. You’re bound to find yourself on the Old Town square at some point during your walk. This is the heart of the Old Town, where cafes spill out onto the cobblestones and trees sway in the breeze. When you’ve finished browsing the shops and picking up souvenirs, grab a cold drink and sit back to enjoy the atmosphere.

Naturally, one of the main draws of the Old Town is the historical sites you can admire. We highly recommend visiting Sant’Ana Church, a small but beautiful 18th-century chapel and the Museum of Sacred Art, a lovely collection of art housed in an 18th-century church. Also in the Old Town is the Galeria de Arte Pintor Samora Barros, home to a wide range of regional artwork. If all that exploring has you working up a sweat, the best place to cool off is the ocean. Luckily, you won’t have to walk too far as the Old Town has direct access to two superb beaches: Praia do Pescadores and Praia do Peneco.

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To the west of the Old Town is the picturesque Albufeira Marina. This area has only recently been developed but has fast become one of the trendiest spots in the city with numerous bars, restaurants and shops. Despite its popularity, it has a more laid-back atmosphere than the rest of the Albufeira, making it the ideal choice for couples and older travellers. If you’re visiting as a family, there are plenty of things to keep the kids entertained, including the Hot Shot Bowling & Leisure Centre, Electric Karting Albufeira Marina and the Pipas Fun video arcade.

The marina is your starting point for boat trips along the coast; you’ll find a large selection of boat tour agencies here who can help you design the perfect day out. Whether you want to go snorkelling in enchanting sea caves, go on a dolphin-watching tour or explore at your own pace by kayak and SUP, an adventure is never too far away. Even if you choose to stay on dry land, the views of the boats bobbing in the water and colourful buildings lining the waterfront will make it hard to tear your eyes away. It’s an idyllic place for sunset while you enjoy a sundowner from one of the alfresco bars.

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Families looking for somewhere to stay in Albufeira should take a quick ten-minute drive out of the centre of Albufeira to Olhos de Água. Centred around a sandy cove, this charming resort offers a more relaxed beach break, with easy access to Albufeira’s attractions. Although you’ll find all the essential services and facilities, the resort has retained its fishing village roots – spot the little fishermen’s huts lining the beach and the colourful boats moored on the sand.

The name of the resort itself comes from the freshwater springs which appear on the beach during low tide. Visitors have the luxury of choosing between the central Praia Olhos de Água, the famous Praia da Falésia beach to the east and the Praia Santa Eulália to the west. As you may have figured by now, life here is very much centred around the beach, and you’re most likely to spend your time sunbathing, swimming, windsurfing and water skiing. If one day you decide to switch things up, make the most of your holiday with an exciting day trip like boat tours, golfing, water parks and other villages and towns in the surrounding area, such as Guia.

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While Albufeira is an excellent choice for people who want a low-key holiday, there are also opportunities to let your hair down. Party animals should look no further than Areias de São João for an unforgettable night out. If you want to go from bar to bed in less than five minutes, then the neon mayhem fondly known as The Strip is a good place to stay – that’s if you get any sleep at all with the endless entertainment to be had in the numerous karaokes, late-night clubs, sports bars, gentlemen’s clubs and adult shops. Most of the action happens in June, July and August, but even during the off-season, you’ll come across your fair share of parties. Areias de São João is much tamer during the day, and with its proximity to the Old Town, you can easily sightsee while walking off the hangover.

At the northern end of The Strip is Montechoro, the best place to stay for those who want to enjoy some nightlife but don’t want to be in the thick of it. This easygoing area has undergone a tourist boom in recent years, giving it a young and hip atmosphere. You’ll find plenty of trendy bars and cafes popular with backpackers and digital nomads.

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Albufeira may offer history, culture and a fun night out, but ultimately, you’re here for the beach. When it comes to where to stay in Albufeira for sun, sea and sand, the relaxed village of Oura is your go-to. It’s just a stone’s throw away from the centre of Albufeira, so you have easy access to all the attractions should you need a change of scenery. Oura is home to Praia da Oura, an accessible Blue Flag beach and one of the finest in Albufeira. In fact, it stretches along to neighbouring Praia dos Olhos d’Agua which makes for a lovely beach stroll when the tide is out. This long sweep of golden sand is very varied – to the west, the beach is more built-up with hotels and open-air cafes, while to the east, it’s quieter and more natural. This makes it ideal for families who want a little more space to run around and play ball games yet don’t want to be too far from the promenade and all its amenities. Those keen to try out watersports can try jet skiing, parasailing, scuba diving or riding the waves on a banana boat.

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