Investing in the Eastern Algarve: Why this area is attracting more and more buyers

The balance between profitability, authenticity and quality of life

1. The Algarve's new centre of gravity

For years, real estate investment in the Algarve has been concentrated between Albufeira and Lagos. But, in recent times, the Eastern Algarve – between São Brás de Alportel, Olhão, Moncarapacho and Tavira – has been asserting itself as the preferred choice of those looking for authenticity, security and stable profitability.

In addition to average prices still below the Barlavento, the Sotavento offers a calmer lifestyle, natural beaches, picturesque villages and a market that, although discreet, grows sustainably.

2. Profitability and real demand

Foreign demand already represents more than 60% of transactions in this area of the Algarve.
French, Dutch and German investors are looking here:

• Country houses with land – ideal for rural tourism and local accommodation;

• Apartments in Olhão, Moncarapacho, Tavira or Cabanas, with high demand for seasonal rentals;
  
  

• Village houses to rehabilitate, with an excellent margin of appreciation.

The average annual gross profitability is around 4.5% to 6% and can exceed 7 % in well-managed tourist properties.

3. Living the "real" Algarve

More than a financial investment, the Sotavento offers an emotional and cultural investment.

Here, daily life is still made up of local markets, traditional festivals and beaches without crowds.

It is a choice for those who value time, tranquility and connection to nature, without giving up access, services and connectivity.

4. Factors Supporting Growth

• Improved infrastructure (A22, EN125, fibre optics, new public services);
  
  

• Municipal policies favorable to urban rehabilitation and AL licensing;
  
  

• Stable international demand – even in years of economic uncertainty;
  
  

• Limited supply – what supports property values in the medium term.
  
  

5. Real Easy: investing with local knowledge

Real Easy closely follows this transformation.

We work with a network of local experts — architects, engineers, lawyers and financial partners — who help turn a simple purchase into a strategic and safe decision.

If you are looking to invest in the Sotavento, between São Brás de Alportel, Tavira, Moncarapacho or São Brás, ask for a personalized evaluation and find out where your capital can yield more — with discretion and know-how.

Talk to us and discover the potential of your investment in the Eastern Algarve