Mid-Term Rentals in the Algarve: Which Cities Perform Best — and Why
- belterraliving
- Jan 6
- 4 min read
The Algarve is no longer just a holiday destination. Over the past few years, it has quietly become one of Portugal’s strongest mid-term rental markets, attracting remote workers, healthcare professionals, project teams, students, and families who need a fully furnished home for 1 to 6 months.
Mid-term rentals fill the gap between short-term holiday lets and traditional long-term leases. They appeal to tenants who seek flexibility, comfort, and simplicity, as well as to owners who desire predictable income with minimal turnover.
Below, we break down the mid-term rental potential of key Algarve cities, ranked by demand drivers such as infrastructure, education, healthcare, tech activity, and lifestyle appeal.
Luso Superhost can help you find an investment with mid-term rental potential!
Why Mid-Term Rentals Are in High Demand in the Algarve
Before diving into the cities, it helps to understand who actually rents mid-term - and why.
Mid-term tenants typically:
relocate temporarily for work or studies
test a city before buying property
work remotely and follow seasonal lifestyles
need furnished housing during renovations or life transitions
They value:
✔ move-in ready homes (fully furnished)
✔ reliable internet
✔ flexible contracts
✔ utilities included
✔ professional management
This makes the Algarve, with its airport, hospitals, universities, and lifestyle, uniquely attractive.
1. Faro — The Algarve’s Year-Round Anchor City
Why Faro works for mid-term rentals
Faro is the Algarve’s administrative, educational, and transport hub. With the international airport, the University of Algarve, hospitals, and public services, demand here is less seasonal and more structural.
Top mid-term clients in Faro
1) University professionals & visiting researchers
Why they choose Faro:
proximity to Universidade do Algarve (Gambelas & Penha campuses)
semester-based stays (3–6 months)
What they look for:
strong Wi-Fi and a proper workspace
quiet bedrooms
washing machine
easy parking or public transport
2) Healthcare professionals (rotations & placements)
Why they choose Faro:
proximity to Hospital de Faro and regional clinics
Key amenities:
blackout curtains (shift work)
reliable hot water
calm buildings
fast maintenance response
Seasonality: low — Faro performs well year-round.
2. Lagos — Algarve Capital of Remote Work
Why Lagos performs so well
Lagos consistently ranks as one of Portugal’s most popular cities for digital nomads and remote professionals. It combines beaches, walkability, coworking spaces, and an international community.
Top mid-term clients in Lagos
1) Remote workers & digital nomads
Why they choose Lagos:
strong international community
lifestyle + productivity balance
Must-have amenities:
fast, stable internet
desk + ergonomic chair
good lighting
self check-in
monthly cleaning option
2) Lifestyle relocators (testing Algarve life)
Why they choose Lagos:
before buying property
longer stays without long-term commitment
What matters:
storage space
good heating & dehumidifier (winter)
quality furnishings
Seasonality: strongest from October to May for mid-term.
3. Portimão — Practical, Central & Underrated
Why Portimão works
Portimão offers year-round city infrastructure with lower prices than Lagos, while still providing beaches, shopping, and healthcare access.
Top mid-term clients in Portimão
1) Healthcare staff & family support stays
Why they choose Portimão:
Hospital do Barlavento
central Algarve location
Key amenities:
lift (if apartment)
parking
excellent hot water pressure
2) Project-based professionals
Why they choose Portimão:
central base for Algarve projects
What they need:
invoices
flexible extensions
durable, practical furnishings
Seasonality: moderate — good balance year-round.
4. Loulé — Stable Demand with Premium Appeal
Why Loulé attracts mid-term renters
Loulé offers a residential feel close to Faro, Vilamoura, and business areas — popular with families and professionals.
Top mid-term clients in Loulé
1) Families relocating or testing the Algarve
Key needs:
2 bedrooms
storage
outdoor space
quiet neighbourhoods
2) Professionals working in the Golden Triangle
What they expect:
higher quality finishes
parking
heating & insulation
Seasonality: low — strong shoulder seasons.
5. Olhão — Authentic Algarve with Growing Demand
Why Olhão works
Olhão attracts tenants who want a local, non-touristy lifestyle, while staying close to Faro and the airport.
Top mid-term clients in Olhão
1) Remote workers seeking authenticity
Needs:
fast internet
quiet nights
good kitchen
2) Winter long-stay couples
Needs:
heating
balcony or terrace
walkability
Seasonality: strong winter demand.
6. Tavira — Calm, Premium & Winter-Focused
Why Tavira performs well mid-term
Tavira is especially attractive for winter stays and calm lifestyles.
Top mid-term clients in Tavira
1) Retirees & slow travellers
Needs:
comfort heating
lifts or minimal stairs
walkable locations
2) Quiet remote professionals
Needs:
workspace
reliable Wi-Fi
peaceful surroundings
Seasonality: strongest from November to March.
7. Albufeira — Mid-Term Works Off-Season
Why Albufeira is niche for mid-term
While famous for tourism, mid-term rentals work best outside peak summer.
Top mid-term clients in Albufeira
1) Hospitality & operations staff
Needs:
affordable monthly rates
bills included
parking
2) Short-term project teams
Needs:
flexible contracts
fast response times
Seasonality: best October–April
Algarve mid-term furnished pricing matrix (monthly)
Assumption for comparability:
T1 = ~50 m², good condition, furnished, Wi-Fi, utilities included.
City | Baseline rent €/m² | Ø Long-term unfurnished T1 (50m²) | Ø Mid-term furnished T1 (50m²) | Ø Upside on Rental Income |
|---|---|---|---|---|
Tavira | 14,10 € | 705,00 € | 1 400,00 € | 98,58% |
Portimão | 14,10 € | 705,00 € | 1 200,00 € | 70,21% |
Quarteira | 16,60 € | 830,00 € | 1 375,00 € | 65,66% |
V. R. Sto. António | 13,30 € | 665,00 € | 1 100,00 € | 65,41% |
Loulé | 16,70 € | 835,00 € | 1 375,00 € | 64,67% |
Lagos | 16,20 € | 810,00 € | 1 325,00 € | 63,58% |
Silves | 13,50 € | 675,00 € | 1 100,00 € | 62,96% |
Albufeira | 16,40 € | 820,00 € | 1 325,00 € | 61,59% |
Faro | 15,80 € | 790,00 € | 1 275,00 € | 61,39% |
Olhão | 14,10 € | 705,00 € | 1 050,00 € | 48,94% |
Lagoa | 16,20 € | 810,00 € | 1 150,00 € | 41,98% |
Final Takeaway for Property Owners
Mid-term rentals in the Algarve are not one-size-fits-all. The best-performing properties:
are clearly positioned (remote work / healthcare / family)
offer work-ready furnishings
include utilities and flexibility
adapt to seasonal demand shifts
At Luso Superhost, we help owners decide where mid-term makes sense, how to furnish and price correctly, how to find the right tenants, and how to manage tenants professionally.
👉 Thinking about mid-term rentals for your property?
Contact Luso Superhost for a personalised rental strategy.
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