With stunning beaches and affordable prices, the Algarve is the ultimate destination for budget-conscious travellers looking for a luxury experience.
The Algarve might be a favourite of well-heeled travellers and high-end investors, but it has now earned another title – best value holiday destination.
According to the latest Post Office Holiday Money Report, the idyllic Portuguese coastline has taken the top spot for affordability. With a total ‘barometer cost’ of just £58.95, the Algarve proves that luxury and value can go hand in hand.
The report found that the Algarve offers exceptional value for travellers, particularly when it comes to dining and drinks. A glass of wine costs an average of £2.80, while a three-course meal for two, including a bottle of house wine, comes to just £40.33.
Compared to global hotspots, the region outranked Cape Town (£59.84) and Tokyo (£63.34) as the most budget-friendly holiday destination. Even budget locations like Sunny Beach in Bulgaria couldn’t compete.
“Even though the Algarve has featured in the best value top 10 since 2010, it has struggled to match the cheapest long-haul destinations on price in recent years. This makes the Algarve a great choice for holidaymakers who want to keep their holiday spending to a minimum,” said Laura Plunkett, head of Travel Money at the Post Office.
The region’s affordability isn’t just great for holidaymakers; it also makes it an attractive market for property buyers. With a strong reputation as a top-tier destination and growing demand for high-quality properties, investing in Algarve real estate – whether for personal use or as a rental – can be a lucrative opportunity.