Investing in the Algarve: tradition, modernity, and profitability in the heart of Lagos

In the Barlavento region, and particularly in the city of Lagos, the property market has steadily established itself as a destination of excellence, both for those seeking a second home and for investors aiming at short-term rentals. An inspiring example can be found in a small townhouse, located on Rua da Ilha Terceira in Lagos, which clearly illustrates the advantages of this investment model.

For the owner, who already holds several properties in the region, the choice was immediate when he was presented with the opportunity: “The location was the main reason for investing in this property. Just 250 metres from the city walls and the historic centre, it offers easy access to services, restaurants and supermarkets, something that’s highly valued by those renting.”

The uniqueness of the house also weighed heavily in the decision: a property with history, originally social housing, that preserved unique elements such as the old wooden trusses. “We managed to partially restore them and, at the same time, legalise the courtyard, where we were able to build a plunge pool. Having a pool in the historic centre is a highly distinctive feature,” he adds.

The buying experience, mediated by Casas do Barlavento, was described as transparent and straightforward, with close support at every stage.

With a diversified portfolio, the investor highlights that this model, buying to let, is now particularly relevant. “With growing international demand, especially from markets such as the US and Canada, distinctive properties with unique features appreciate above the market average.”

Another factor reinforcing Lagos potential is the absence of containment zones for short-term holiday lets, unlike in other Portuguese cities. For those without the time to manage bookings, check-ins, and maintenance, management and rental services are decisive: “The intuitive back office of Casas do Barlavento Rentals allows me to monitor bookings, income, and costs in real time, and the integration with platforms such as Airbnb, Booking.com and VRBO maximises occupancy.”

The recommendation for new investors is clear: focus on studios or one-bed units. “These properties ensure near year-round occupancy, ideal for couples travelling outside the high season. And, as always, location is key.”

If rationality prevails on the investor’s side, for architecture, the challenge was to unite tradition and modernity. “The main challenge was to reorganise the interior dimensions without altering the façade, while also ensuring privacy on a corner plot surrounded by balconies,” explains Ana Conceição Silva the architect in charge.

The inspiration came from the very history of the workers’ quarter, where the property is located: “Preserving memory was the guiding principle of the project. ‘Less is more’ was the motto: comfort achieved through natural materials and quality finishes.”

The house incorporates local elements such as painted concrete thresholds, stone walls with lime mortar, barrel roof tiles, and terracotta flooring from Santa Catarina. The small swimming pool, in natural sky blue marble, blends with a Mediterranean garden.

Inside, Estremoz marble flooring contrasts with exposed wooden trusses and industrial metal details, in homage to the area’s past.

The architect further stresses that good architecture makes no distinction between living and letting: “The space should be comfortable and aesthetically pleasing in any context. True luxury lies in essence and in natural materials.”

The results of this approach are confirmed by guests. One of the most recent reviews sums up the impact: “My wife and I loved this place! We couldn’t decide between staying in or going out to explore the city, that’s how comfortable this place is. Definitely recommend!” (rating: 9.7/10). This testimony reinforces that, when architectural authenticity is combined with efficient management, the return is not only financial, but also the satisfaction of those who live the experience.

Investing in the Algarve, and particularly in Lagos, means choosing a growing, safe destination that is increasingly valued internationally. The combination of unique-character properties, specialised management services, and a robust rental market creates the ideal conditions for those seeking profitability with peace of mind.

In the case of the Ilha Terceira townhouse, the investor’s vision, the architect’s creativity, and the guests’ positive experiences converge into a clear example: in the western Algarve, tradition and innovation go hand in hand, transforming properties into opportunities for life and investment.

Trust those who turn goals into achievements. Visit us at Avenida dos Descobrimentos, Lote 7 - R/C Esq, 8600-645 Lagos, Portugal.

(+351) 282 780 870 / www.casasdobarlavento.com / info@casasdobarlavento.com / https://cdbrentals.com/