Algarve Tops List for British Homebuyers Seeking Overseas Property

The Algarve has once again been identified as the most sought-after overseas destination for Britons looking to purchase property, according to data from Rightmove. This marks the second consecutive year the southern Portuguese region has held the top spot for online searches by potential buyers.

Despite its continued popularity among British house-hunters, data from Portugal's National Statistics Institute (NSI) indicates a broader trend of declining property purchases by non-residents. In 2025, buyers with tax residency outside Portugal bought 8,471 homes, a decrease of 13.3% compared to the previous year. This marks the third year in a row that such purchases have fallen.

The NSI also reported that foreign buyers often pay more for properties in Portugal than those with tax residency in the country. Last year, nearly 30% of homes purchased by overseas buyers were located in the Algarve. For Britons, a key consideration for staying in the Schengen area, which includes Portugal, is the limit of 90 days within any 180-day period without a visa.

Nick Robertson, Rightmove's director of overseas, noted that familiar destinations continue to draw many British home-seekers. "Sunshine, lifestyle, and the cost of living continue to attract many to consider an overseas move," Robertson said. "For those thinking seriously about buying abroad, summer can be a really key time to explore what different locations have to offer, from the type of homes available to practical considerations of moving overseas or buying a holiday home."

The Algarve is also a popular choice for retirees. Portugal offers a D7 Passive Income Visa, which allows non-EU citizens with stable passive income, such as pensions or rental income, to gain residency. To qualify, applicants must demonstrate a minimum monthly income of €920 (£796) or an annual income of €12,880 (£11,145).

When purchasing property in Portugal, buyers typically sign a promissory contract after agreeing on terms. A deposit of 10% to 30% of the property value is paid upon signing. If the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double the deposit amount.

Beyond the Algarve, other popular overseas destinations 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 followed in fourth and fifth, respectively. Crete, Corfu, Murcia, and Normandy also featured in the top ten.

Several properties are currently available in the Algarve, catering to various budgets. A two-bedroom villa in São Bartolomeu de Messines is listed for €195,000 (£167,349). This renovated property features high ceilings with wooden beams and includes a large garage.

A two-bedroom ground-floor flat in Lagoa is on the market for €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). The property includes three bedrooms in the main house and a separate two-bedroom flat on a lower level, offering potential rental income. It is situated in a quiet area, an eight-minute walk from Lagos Marina.

A three-bedroom ground-floor flat in Quarteira is listed for €1,390,000 (£1,192,898). Located on the waterfront, the property is just 10 metres from the beach and offers unobstructed sea views. It features acoustic and thermal insulation.

For a more luxurious option, a five-bedroom villa in Boliqueime is on sale for €4,475,000 (£3,840,445). This expansive property spans nearly 8,000 sq ft and includes sea views, a swimming pool, rose gardens, a pond, a treehouse, a barbecue area, and a covered outdoor dining space.