Faro or Lagos? Where to Stay in the Algarve Portugal?

As one of the hottest destinations in Portugal, the Algarve gets a lot of attention and so does its major cities. At the top of most lists when it comes to picking somewhere to stay in the Algarve are Lagos and Faro.

Faro – The Capital and Arrival City

Faro is the typical arrival city, which is also the only city in the region which has an international airport. It’s also the capital of the Algarve so serves as a commercial and transport hub, and has a year-round population of both locals, students, and of course seasonal tourists.

Lagos – The Wild West Algarve

Lagos on the other hand has developed more recently as a destination for visitors. It has the glorious beaches, the postcard worthy cliffs, and has kept its old town. That said, the recent tourist developments, large hotels, apartments, and supporting facilities have started to erode the traditional seaside feel of the town. So, Lagos or Faro? And how do you choose? We’ll cover all this and more in this guide to help you choose between Lagos and Faro.

Where are Faro and Lagos?

Both cities are located on the coast in the Algarve, however they are approximately 70 miles (90 km) apart. Lagos marks the start of the west Algarve, known for its incredible beaches, cliffs, and cave formations, and an overall wilder and more remote feel.

Faro marks the start of the East Algarve, a flatter landscape bordered by the stunning Ria Formosa that stretches for nearly 40 miles along the coastline. You really should experience both to get a good feel for both areas. However, if you can only choose one?

The Similarities Between Lagos and Faro

First, lets cover what is similar about the cities. They’re both smaller cities in the Algarve, with lots of history and culture. Both cities thrive during the summer months and experience a large uptick in visitors. Both cities also have historic old towns, fortifications, and museums that cover the long history and culture of the region. Additionally, both cities have marinas and a local fishing industry, and both have some fantastic restaurants serving local food!

The Differences between Faro and Lagos – Beaches

The biggest difference is perhaps the coastline around the cities. Lagos borders the small river of Ribeira da Bensafrim and its coast is mostly made of cliffs and small beaches. These beaches and cliffs are undeniably stunning, and have occupied postcards of the Algarve for decades. This also means you can walk to some of those beaches directly from Lagos, and many of its accommodation options.

Faro is located within the Ria Formosa, a large tidal lagoon that sits along the east Algarve. This means that the waterfront surrounding Faro, isn’t really the ocean but the lagoon. This also means that if you want to be able to walk to the beach, it’s not possible from Faro. The closest beach to downtown Faro is Praia do Faro which is around 9km (6 miles) away. You can drive, bus, and during the summer season take a ferry from the city centre. The beaches close to Faro, and those in eastern Algarve, are typically longer, flatter, warmer and often less windy than those in Lagos.

Lagos vs. Faro – The City Centres and Old Towns

Now for the towns themselves, although its difficult to compare. For us, we prefer the more local feel of Faro, vs the more developed and touristy Lagos. Lagos’ old town definitely has more ticket shops, souvenirs shops and international restaurants, and a common complaint is that it’s losing its Portuguese heart. You’ll need to make your way through burger joints, pizzerias, and curry houses, before you find your more typical marisqueira or petisqueira.

This so far, is not so much of a problem within Faro. Yes, you’ll find international food – including the usual fast-food restaurants. However there’s still plenty of great local options – Petisqueira 3 em Pipa and Portas Sao Pedro to name a couple of our favourites. For food and overall experience, we’d pick the underrated Faro over Lagos.

Faro or Lagos? – Accommodation

Lagos is your more typical seaside town and boasts a far wider range of accommodation to suit lots of different budgets. You’ll find everything from 5 star spa hotels, to family friendly resorts with pools, and typical surf hostels.  Faro as a more local city is a bit lacking in this respect, its selection of hotels is much smaller, and they’re more oriented to city breaks and shorter stays. If you’re looking for a hotel with a pool for your family, then Lagos is the better pick!

Choose Lagos if:

• You want to be able to walk to the beach.
• You want to hike around cliffs and explore coastal paths.
• You want more resort style nightlife.
• You want to be surrounded by a more international presence.

Choose Faro if:

• You want a more local city vibe.
• You want to experience local food.
• You’re interested in boat trips and remote islands.
• You don’t mind a drive, bus, or ferry, to the nearest beach.

So, which should you choose? Faro Or Lagos?

It’s a tough decision and you can do no wrong in either location! They are both great places but obviously different. For us, we have a soft spot for Faro and the Ria Formosa. The beaches are less dramatic, but you can’t beat the white sand and deserted island feel of some of the islands like Ilha do Farol!

For swimming as well, the waters in the east Algarve and in the lagoon tend to be warmer and calmer than those around Lagos. However, Lagos has beaches you can walk to from the town, so heading to the beach is possible at any time. Additionally, for hiking, Lagos really has that wow factor! In Faro, you’ll need to rely on the bus or taxis to Praia da Faro, or ferries to the beach and various islands. We’d pick Faro, what would you choose?

Want to find out more about Faro and Lagos?

The Ultimate Guide to Faro [2025]

The Ultimate Guide to Lagos [2025]