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Ferragudo, Portugal: The unknown gem of the Algarve

When planning our trip to the Algarve I knew we wanted to stay central. We wanted to do some hiking along the cliffs, kayaking, and then a road trip to the Western Algarve. So when looking for a place to stay we narrowed our AirBnB search to areas east of Lagos and west of Albufeira. During our search we found so many cool AirBnBs, but this terrace attracted us to this amazing studio for only $39/night! Interested? Well, good news! If you have never used AirBnB use this link to get $35 off your first booking!

Photo from Airbnb

We spent three nights at this wonderful spot perfectly located in the beautiful fishing village of Ferragudo. What I didn’t know before we arrived was how much I would fall in love with this little town. On our first night on the terrace watching the sunset you could hear the local guitarist walking through the streets playing traditional Portugese music. This combined with the cool breeze coming off of the ocean and the rolling orange roofs we literally couldn’t have asked for a more perfect place to base ourselves while in the Algarve. 

What to do in Ferragudo?

Ferragudo is not big – Around 2,000 people live in this small fishing village. Whenever we arrive in a new town we like to walk around the city to get the feel of things. We couldn’t get over how cute the tiny streets were with all of the whitewashed buildings and ended up walking through most of the town within an hour of arriving.

Walking through the streets

I seriously couldn’t get enough of the tiny streets (that cars drive on!) flowing in and out of this little hilltop town.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

The town is situated on top of a hill overlooking the river estuary of Rio Arade so as you keep climbing up the streets (and stairs!) the views keep getting better and better. Once you get to the top you’ll come across the church of Ferragudo. We happened to be there when the bells were chiming at noon and it was magical.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

We then headed down to the beach and forgot to take pictures of the Fort of São João de Arade. You’ll just have to go for yourself to see this sand-colored port perched on top of the hill overlooking the beach. It was kind of cloudy so we continued on to the marina where we found WildWatch Boat tours. We took an awesome tour to the famous Benagil cave (blog to come soon!) and then returned to get some grub.

Eating in Ferragudo

We had amazing food in Ferragudo. We enjoyed multiple coffees basking in the sun at a cafe with comfy couches in the main square. Go where the locals are and you can’t go wrong for good breakfast and tasty coffee. We had a great dinner at Barril and the BEST dinner we had in Portugal at Restaurante “O Velho Novo”.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

While this might not look that impressive the grilled fish with prawns and roasted garlic coating every morsel of vegetable was a dinner literally made for me. Paired with a bottle of wine for 11 euro you can’t go wrong.

Sunsets in Ferragudo

Now for the best part and why you have to stay in this Airbnb. The sunsets from this vantage point are phenomenal. We purchased two bottles of wine from the grocer for €5.33 (stuff is really affordable here!), headed up the hill where we saw the white buildings glowing from the setting sun, and plopped down on the lounge chairs to enjoy the end of another perfect day in the Algarve.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

Final Verdict

With close proximity to some of the top sights of the Algarve (and beaches!) Ferragudo is a great way to experience the slower life of the Portugese people without the hustle and bustle of all of the tourists. Of all of the towns we visited in the Algarve this was by far our favorite of them all.

Have you ever been to the Algarve? What’s your favorite town in the Algarve? Comment below!

 Happy Trekking!

– Boots not Roots

Ferragudo, Portugal is the unknown gem of the Algarve. With quaint cobblestone streets, tiled buildings, and a church at the top of the town overlooking the bay it's the perfect location to base yourself in the Algarve.

  • so pretty! #farawayfiles

    • Danielle from Boots not Roots

      Thank you Tanja!

  • Different Shores

    Aah “multiple coffees basking in the sun” – is there anything better? Not to mention the bargain wine! Those little streets look so gorgeous, I’ll deffo make a note of this place #FarawayFiles

    • Danielle from Boots not Roots

      Haha there is nothing better than forgetting about time while sipping coffee (or wine!) in the sun. A country with good wine and/or coffee + sun is literally my dream come true as these are my favorite things.

  • daisythebus

    Ah! Undiscovered Portugal – my favourite!! Like you, I love the midday bells, the wonderful coffee and the shady. narrow streets. We have family in a similar-sized Portuguese town near Lisbon, and I feel happier there than in the more touristy areas. Thanks for evoking happy memories!

    • Danielle from Boots not Roots

      Yay! 🙂 I love finding hidden gems like this particularly on a relaxing vacation like in the Algarve. Glad to see another traveler who enjoys a bit “off-the-beaten-path”.

  • What gorgeous streets – I love Portugal, and the Algarve has some wonderful towns and villages away from the resorts. Definitely making a note of this for the future- and I’m a big AirBNB fan so this is perfect! #farawayfiles

    • Danielle from Boots not Roots

      This AirBnb was PERFECT so you’d love it. The terrace was out of this world and for only $35 a night you literally can’t beat it. Let me know if you get to visit and what you think!

  • Clare Thomson

    This looks like my idea of perfection. I’m saving it now – definitely adding to my wishlist. Thanks so much for linking it up to #FarawayFiles

    • Danielle from Boots not Roots

      Clare – It really was an amazing little town! 🙂 Highly suggest visiting if you are in the Algarve!

  • Ahila Thillainathan

    Exploring those lovely streets, tasting delicious food and enjoying a glass of wine while watching a beautiful sunset sounds like a perfect holiday. #FarawayFiles

    • Danielle from Boots not Roots

      It really was Ahila! I’m glad you enjoyed it!

  • Untold Morsels

    I see we share the same definition of “gem”! I am yet to visit the Algarve but I have been to and loved Lisbon so I can imagine I will fall in love with this region of Portugal. Those sunsets are simply magical. Dreaming of them now and hve pinned for later #FarawayFiles

    • Danielle from Boots not Roots

      I’m so glad you enjoyed it Katy! We loved Lisbon as well, but the Algarve is a place we will cherish forever. So relaxing and quaint if you can find gems like Ferragudo to get away from the crowds. 🙂

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