The former fishing village of Albufeira has expanded since the 1960s into one of the Algarve's major holiday resorts and now has over 16.000 permanent residents. During the summer the old centre of the town with its plentiful collection of shops, bars, clubs and restaurants is filled-up with tourists from all over the world.

Albufeira is surrounded by some of the best know beaches from Praia da Falésia in the west to Praia de S. Rafael in the east. A new marina is currently being constructed on the west side.

The name of Albufeira goes back to the times of the Moorish occupation Al-Buhera when it became an important trading port in the 8th century.

Albufeira is undoubtedly the Algarve's most famous holiday playground and encompasses the old town, the hilltop Montechoro area, Praia da Oura and Areias de São João. The old town, perched on a cliff top, commands fabulous views of the fishermen's beach below and has a maze of steep cobbled alleyways, crammed with restaurants, bars and shops. East of the old town lies the Montechoro area, set back from the coastline and enjoying panoramic views. The famous "strip" is well known for its disco bars, restaurants and pubs and is the perfect place for night owls. For those who prefer the quiet life, the lovely beaches at Oura Praia and nearby Santa Eulalia provide glorious spots for relaxing.