Algarve crowned top overseas spot for Britons searching for a home – here’s five properties available for all budgets

The Algarve is the most searched-for overseas destination for potential buyers and online browsers in Britain this summer. 

This year is the second consecutive year the southern Portugese region has taken the top spot, according to Rightmove.. 

But the number of properties purchased in Portugal by non-residents, including foreign nationals, has fallen for the third consecutive year, according to data from Portugal’s National Statistics Institute (NSI) published in April 2026

In 2025, buyers with tax residence outside Portugal purchased 8,471 homes, representing a drop of 13.3 per cent compared to the previous year, the NSI said. 

The NSI said foreign buyers often paid significantly more for property in Portugal than those with tax residency in Portugal. 

The NSI added the Algarve was the location for nearly 30 per cent of homes purchased in Portugal by overseas buyers last year. 

Plus, without a visa, Britons can only stay in the Schengen area for up to 90 days out of every 180. 

While the number of foreign buyers overall in Portugal has dropped, it remains a popular option for Britons house-hunting online. 

It is also a popular option for retirees.  

Portugal’s D7 Passive Income Visa is a good option for retirees. This visa allows non-EU citizens with stable, regular passive income, such as a pension, property or dividends, to obtain residency provided they earn at least €920 (£796) per month or €12,880 (£11,145) per year.

Nick Robertson, Rightmove’s director of overseas, said: ‘Whether it’s a permanent move, a second home abroad or more casual summer browsing during the holidays, we’re seeing that many British home-hunters are still drawn to familiar favourite destinations. 

‘Sunshine, lifestyle, and the cost of living continue to attract many to consider an overseas move. 

‘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.’

How does buying property in Portugal work? 

If you buy a home in Portugal, you sign a promissory contract after agreeing the terms of the purchase.

This is a legal commitment to buy and you pay a deposit of about 10 to 30 per cent of the property value when signing it.

If you pull out of the purchase, you lose your deposit. If the seller pulls out, they must pay you double the deposit you paid. 

Where else are Britons searching online?

Rightmove said the second most poplar overseas destination for Britons browsing for homes online was Paphos in Cyprus. 

Mallorca in Spain came in third place, with the Dordogne in France came in third place, Rightmove said. 

Alicante in Spain and Spain’s Costa Del Sol came in fourth and fifth place respectively. Crete, Corfu, Mercia and Normandy also made it to the top ten.  

What can you buy in the Algarve?

This two-bed villa in São Bartolomeu de Messines is in sale via Divine Home, Portugal, for €195,000, or £167,349. 

The villa is located in a cul-de-sac and has high beams with wooden beams inside. It has been renovated throughout and is ready to move into. The villa comes with a large garage.  

This two-bed ground-floor flat in Lagoa in the Algarve is on sale for €345,000, or £296,079 and spans around 1,400 sq ft. 

The flat is in a development of 19 properties and comes with two shared swimming pools and is within walking distance of a Michelin-star restaurant and golf course. 

This five-bed villa in Lagos, Portugal, is on sale for €595,000, or £510,629, via SeaToSkyHomes. 

There are three bedrooms in the main house and two on a lower level in a space currently used as a flat. Part of the property could be rented out by the new buyer. 

The villa is in a quiet location, but only an eight-minute walk away from Lagos Marina. 

This three-bedroom ground-floor flat is located in Quarteira and is on sale via Prestige Property Group for €1,390,000, or £1,192,898. 

This modern three-bed ground-floor flat is by the waterfront in the heart of Quarteira, and 10 metres from the beach. It has unobstructed views of the ocean and has been equipped with both acoustic and thermal insulation.  

This five-bed villa in Boliqueime is on sale via Alina Reis, Bespoke Luxury Property and Advisory, for €4,475,000, or £3,840,445. 

It spans nearly 8,000 sq. ft. and has sea views and a swimming pool. 

Outside, as well as the pool there are multiple rose gardens, a pond and a treehouse. There is also a barbecue area and a covered outdoor dining space.