Albufeira

As of May 2026, Albufeira, Vilamoura, Lagos, Portimão have 8,357 active Airbnb and VRBO listings. This represents a 9% decrease from the previous year.

The average Airbnb or VRBO in Albufeira generates €24K per year. High-performing properties earn €62K/year, while low-performing properties earn €11K/year. The significant delta between top and bottom tiers suggests a market where revenue is heavily concentrated in specific segments, likely driven by asset differentiation despite the recent 29% decline in overall market revenue.

Airbnb and VRBO can be profitable in Albufeira. Average annual revenue is €24K with 36% occupancy. High-performing properties earn up to €62K/year. With supply contracting by 9% year-over-year, the current occupancy rate highlights a competitive environment where only a subset of properties captures the bulk of available demand.

The average occupancy rate for Airbnbs and VRBOs in Albufeira is 36%. This occupancy level, combined with an average nightly rate of €208, results in a RevPAR (revenue per available room) of €40 per day.

4+ bedroom properties demonstrate the strongest performance in Albufeira, with annual revenue of €45K. These properties balance operating costs and rental demand most effectively in the Albufeira market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Albufeira area. Albufeira: Moderate. AL (Alojamento Local) registration mandatory, safety/technical requirements. Standard enforcement in tourist areas. Vilamoura: Moderate. AL registration required, condominium rules may restrict. Moderate enforcement, resort area compliance expected. Lagos: Moderate. AL license mandatory, building standards apply. Growing enforcement pressure in historic center. Portimão: Lenient. AL registration required but minimal oversight. Light enforcement, many operate informally despite rules. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Albufeira Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 9% year-over-year, while RevPAR has decreased 29%. This indicates balanced supply-demand dynamics. The concurrent drop in both supply and revenue suggests that market contraction is currently outpacing the removal of capacity, placing downward pressure on overall yield.

Launch around May, 2-3 months before peak summer season (August peaks). This pre-peak timing lets you build reviews when competition is 13% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (November-January) when gaining traction is harder.

The most common amenities in Albufeira listings include: Kitchen (95%), Washing Machine (90%), Air Conditioning (87%), Tv (76%), Balcony (75%). Amenities that boost revenue the most include Pool, Hot Tub, Air Conditioning, with Pool properties earning approximately 57% more (€47K/year vs €30K/year).

Monthly estimated revenue per listing in Albufeira over the last 12 months: May: €1K, June: €2K, July: €2K, August: €2K, September: €2K, October: €1K, November: €448, December: €609, January: €297, February: €340, March: €668, April: €1K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Albufeira is €208, up 21% year-over-year. By property size: 1-bedroom properties average €117/night, 2-bedroom properties average €166/night, 3-bedroom properties average €289/night, 4+ bedroom properties average €510/night. Rates peak in August and are lowest in January.

Guests in Albufeira book an average of 40 days in advance, down 29% from last year. By property size: 1-bedroom: 36 days, 2-bedroom: 40 days, 3-bedroom: 43 days, 4+ bedroom: 48 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Albufeira Airbnb and VRBO market has seen the following changes: supply declined 9%, revenue per listing decreased 29%, occupancy fell 9%, average nightly rates increased 21%, and lead time decreased 29%. These metrics reflect a shift toward shorter booking windows and higher price sensitivity, complicating revenue predictability despite the reduced inventory.

In Albufeira, Friday sees the highest booking demand while Sunday has the lowest. Nightly rates peak on Friday and are lowest on Wednesday.