The finest eco resorts in the Algarve

For travellers and homebuyers who prioritise green innovation with a degree of luxe, the Algarve should be high on the wish list. This perennially popular region in southern Portugal – prized for its natural beauty, relaxed quality of life and exceptional golf facilities – is home to several cutting-edge sustainable developments that are increasingly attracting the eco-conscious. 

With a focus on renewable energy efficiency, biodiversity, smart water management and climate resilience, these low-density resorts offer the latest in futureproofing. The Algarve is also ideal for remote working, wellness and family life, with superb beaches, excellent schools, top-drawer leisure activities and easy airport access. It ranks 10th on the Savills Executive Nomad Index for 2025. 

Key factors in the evolution of these developments include a demand for greater eco-efficiency from homeowners spending longer periods in the region, and national and local incentives for sustainable development, says Monika Hanlon, new homes sales director at QP Savills. “Green tax programmes – including VAT reductions – energy-efficiency grants and national sustainability mandates are encouraging developers to pursue high ecological standards.”

Sustainability is at the heart of Arcaya, a new development in the prestigious “golden triangle” of the Algarve, which takes in Vilamoura, Almancil and Quinta do Lago. It is set in 68 hectares of restored native forest and is being constructed with pioneering methods, including engineered wood structures that reduce waste, emissions and dependence on concrete. 

Located between Vila Sol and Villamoura, Arcaya is due to be completed by 2028 and is already attracting interest from those planning extended trips and families who have cherished the area through the generations. “It’s a residents-first rather than a touristic resort,” Hanlon says, and in keeping with the visionary approach. The addition of a Mondrian hotel will bring creative energy and cultural cachet. 

Three types of villa – Timber, Terracotta and Sand, with varying earthy hues of render – feature green roofs, passive cooling, shaded terraces, solar panels and dual tanks for rainwater harvesting and greywater reuse systems. These four-bedroom villas start at €1.95m, but there are also masonry-constructed Sunset Villas with three bedrooms (from €1.07m) and building plots with planning and design guidelines for a bespoke villa, from €855,000. 

Amid the rugged dunes, wild pine forests and lakes of the less developed eastern Algarve, Verdelago Resort offers an alternative take on five-star sustainable living. Close to the town of Castro Marim, it is fronted by pristine beaches and within easy reach of Faro and Seville. It has a similar feel to Comporta, the fashionable stretch of coast south of Lisbon where low-slung properties in vernacular style sit next to sand dunes and cork forests.  

Verdelago means “green lake”, and the resort is set in 80 hectares of protected coastal terrain, with a build density of just 8.7%. 

Lush green roofs disappear into the hillsides, and properties here are built in taipa – an ancient local technique that uses rammed earth, clay and gravel for thermal insulation. A five-star Marriott hotel will be completed by 2027 – the first to be announced in Portugal. 

Prices range from €745,000 for a one-bedroom apartment to €1.845m for three bedrooms. Some owners have already moved in, and Hanlon says the resort is transforming perceptions of the eastern Algarve: “It’s been very popular with northern Portuguese as well as UK buyers.”  

For those seeking capital uplift as well as renewed energy, Natura Village is another option. This smaller resort on the fringes of Vilamoura exemplifies energy-positive living and landscape-driven design, integrating passive and climate-responsive options. There’s community solar grid sharing – lower energy bills also appeal to buyers – and smart irrigation in 45 acres of green spaces and nature trails. Prices start at €790,000 for a two-bedroom villa and €950,000 for a three-bedroom property.  

Near a new private Ernie Els golf course – the first in Europe – and the Vilamoura International School, Natura Village is tipped by Hanlon as a location to watch. A state-of-the-art sports centre is also set to open in 2026. “There are more improvements in the pipeline in this popular area for rentals,” she adds. “It is of interest to investors, too.” 

Eco-friendly developments are the way forward in the Algarve – and these are three of the best.

MONIKA HANLON, NEW HOMES SALES DIRECTOR, QP SAVILLS
monika@qp.pt