Algarve Remains Top Overseas Property Search for Britons, Despite Falling Purchase Numbers
The Portuguese region leads online interest for UK homebuyers, though overall foreign purchases have declined for the third consecutive year.
The Algarve has once again topped the list of most-searched overseas destinations for Britons looking to buy property, according to Rightmove. This marks the second consecutive year the southern Portuguese region has held the top spot in online searches this summer.
Despite the sustained interest from British buyers online, data from Portugal's National Statistics Institute (NSI) revealed that the number of properties purchased in Portugal by non-residents has decreased for the third year in a row. In 2025, buyers who were not tax residents in Portugal acquired 8,471 homes, a 13.3% reduction compared to the previous year. The NSI noted that foreign buyers typically paid more for properties in Portugal than those with Portuguese tax residency.
Last year, the Algarve accounted for nearly 30% of homes purchased in Portugal by overseas buyers. While the overall trend shows a decline in foreign property purchases, the region continues to be a popular choice for Britons, especially for those considering retirement abroad. Portugal's D7 Passive Income Visa offers a pathway to residency for non-EU citizens with stable passive income, such as pensions, of at least €920 (£796) per month.
Nick Robertson, Rightmove's director of overseas, commented that familiar destinations remain attractive to many British home-hunters, whether for permanent moves, second homes, or holiday browsing. He cited sunshine, lifestyle, and cost of living as key draws for considering an overseas purchase.
Property Purchase Process in Portugal
Buying property in Portugal involves signing a promissory contract after agreeing on terms. This contract represents a legal commitment to purchase, with a deposit of 10% to 30% of the property value due upon signing. If a buyer withdraws, the deposit is forfeited. If the seller withdraws, they are obligated to return double the deposit amount to the buyer.
Other Popular Overseas Destinations
Beyond the Algarve, other popular overseas locations for Britons searching for homes online include Paphos in Cyprus, which ranked second. Mallorca and the Dordogne region of France tied for third place. Alicante and Spain's Costa del Sol were fourth and fifth, respectively. Crete, Corfu, Mercia, and Normandy also featured in the top ten.
Properties Available in the Algarve
Several properties are currently available in the Algarve for various budgets. A two-bedroom villa in São Bartolomeu de Messines is on sale for €195,000 (£167,349). This renovated property features high ceilings, wooden beams, and a large garage. 
A two-bedroom ground-floor flat in Lagoa is listed at €345,000 (£296,079). This 1,400 sq ft flat is part of a development with two shared swimming pools and is located within walking distance of a Michelin-star restaurant and a golf course.
In Lagos, a five-bedroom villa is available for €595,000 (£510,629). This property includes three bedrooms in the main house and two in a separate lower-level unit, offering potential rental income. It is situated in a quiet area but is an eight-minute walk from Lagos Marina.
A modern three-bedroom ground-floor flat in Quarteira, priced at €1,390,000 (£1,192,898), is located on the waterfront with unobstructed ocean views and features acoustic and thermal insulation.
For those with a larger budget, a five-bedroom villa in Boliqueime is on the market for €4,475,000 (£3,840,445). This expansive property, nearly 8,000 sq ft, features sea views, a swimming pool, rose gardens, a pond, a treehouse, a barbecue area, and a covered outdoor dining space. 
Meanwhile, mortgage rates in the UK have seen recent increases due to inflation, impacting remortgaging and home-buying costs. This makes securing a favorable mortgage rate and obtaining expert advice crucial for all buyers.