Olhão, Algarve: Culture, Cuisine and Coastal Charm

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Olhão in the Algarve is a charming coastal town that proudly celebrates its rich fishing heritage and vibrant local culture. Once considered a quieter and less attractive option to more upscale areas like the Golden Triangle, Olhão has recently undergone impressive revitalization. These transformative changes, driven by substantial investments, have significantly boosted its appeal to holidaymakers and investors alike. As a result, Olhão is now an increasingly attractive destination in the Algarve.

Olhão, Algarve – Access and Location

Sitting east of Faro, Olhão sits on the Algarve’s stunning Ria Formosa Natural Park. It is accessible via car, train, or bus and it is also close to Faro International Airport.

By Road

Olhão is just 15km east of Faro, the capital of the Algarve. It is also conveniently located along the N125 road, which runs along the length of the region.

By Train

Olhão train station is part of the Algarve train line (Linha do Algarve). The train line connects towns across the Algarve, from Lagos in the west to Vila Real de Santo António on the Spanish border in the east.

By Air 

Faro International Airport is the nearest airport, just a 20-minute drive away. Reaching Olhão by transfer or taxi from the airport is easy and relatively inexpensive. There are also numerous car hire options from Faro Airport.

Olhão Town, Algarve and Rio Formosa Natural Park

History of Olhão, Algarve

Olhão’s history is deeply rooted in fishing, with origins dating back to the 17th century when the first settlers began building small fishing huts along the coast. Over time, the town evolved into a bustling fishing port. Today’s architecture still reflects a blend of influences, notably the distinct whitewashed, cube-shaped houses reminiscent of Moorish design. Olhão was granted town status in 1808, following a unique uprising against Napoleon’s forces. This helped to mark its place as an important site of Portuguese resistance.

Olhão has experienced significant transformation in recent years. One of the standout developments is the multi-million-euro revamp of its marina. This €8.5 million project, funded by both private and municipal investments, aims to upgrade the marina’s infrastructure. This investment will make it a top-tier destination for both tourists and locals. The renovation includes an expanded number of berths, enhanced safety measures, and a new shipyard, all intended to attract visitors with higher purchasing power. Furthermore, it is expected to drive local economic growth and increase property values throughout the Algarve region.

Places to Visit in Olhão, Algarve

1. Mercado de Olhão (Olhão Market):
This authentic market is probably Olhão’s most famous asset. Situated within twin brick buildings, visitors can expect to find fresh seafood, fruits, and vegetables as well as experience the local culture.

2. Ria Formosa Natural Park:
A vast lagoon system, Ria Formosa is home to diverse wildlife and can be explored by boat. Furthermore, guided tours often include stops at nearby islands and are a fantastic way to experience the park.

3. Ilha da Culatra and Ilha da Armona:
These islands are reachable by ferry and boast pristine beaches and traditional fishing communities. Accordingly, they are popular day trip destinations from Olhão.

4. Igreja Matriz de Nossa Senhora do Rosário:
This beautiful 17th-century church, located in the heart of Olhão, still features Baroque architecture and an elegant interior.

5. Museu Municipal de Olhão: A local museum offering insights into the town’s maritime heritage and its role in Portuguese history.

Olhão Market, Algarve / Mercado do Olhão, Algarve

Things to Do In and Around Olhão

1. Island-Hopping Tours: Olhão is the gateway to several islands, each offering beautiful beaches and unique local charm. Access is possible by public ferry but private taxi boats and tours are also available. The four islands worth visiting are:
   
   – Ilha da Armona: This island has a Caribbean feel due to the small, single-story houses lining the pedestrian boardwalk that crosses the island.
   
   – Ilha da Culatra: Home to a traditional fishing community, this island is a popular spot for nature enthusiasts. It is also ideal for those looking for pristine beaches, and a quaint village atmosphere.
   
   – Ilha do Farol: Named after its lighthouse, Farol Island is a favorite for its stunning beaches and clear waters. It is, therefore, a popular spot for snorkeling and other water sports.
   
   – Ilha Deserta (Barreta Island): True to its name, “Deserta” offers an untouched and wild landscape with few visitors. As a result, there is only one restaurant, Estaminé, which serves local specialties.
   
2. Bird Watching: Ria Formosa is a popular habitat for birds such as flamingos. Bird-watching enthusiasts can join a boat tour to take them to all the best places to spot birds.
   
3. Seafood Tasting: Known as one of the best towns for fresh seafood in Portugal, Olhão’s restaurants subsequently offer fresh catches, including clams, octopus, and oysters. For the full experience, Visitors can combine visiting the traditional market with learning about the fishing industry from those involved.
   
4. Shopping for Local Crafts: Olhão has a variety of artisan shops where you can find handmade crafts, pottery, and textiles.
   
5. Cork Factory Tour: For a unique experience beyond maritime history, you can also tour a local cork factory and explore a traditional industry that has played a major role in shaping the region. Here, you’ll gain insights into the intricate process of cork production and its equally important role in the Algarve’s economic and cultural heritage.

Ilha Deserta, Olhão Algarve / The Deserted island, Olhaõ, Algarve

Eating and Drinking in Olhão Algarve

Olhão’s dining scene showcases Portuguese cuisine with flavors from the sea and the land, offering options for every budget. Due to its history as a fishing port and fresh produce market that is still active today, Olhão is often regarded as one of the best places for fish and seafood in the Algarve.

• Vai e Volta – $$:
  Known for its all-you-can-eat seafood concept, this restaurant serves fresh catches at a fixed price. It is a particularly popular venue among locals and tourists.
  
• See Sea Sim – $$$:
  One of the newest offerings in Olhão and located in the new marina complex, the restaurant serves traditional but contemporary Algarve-inspired dishes. The enticing menu includes grilled fish, seafood risottos, and seasonal specialties.
  
• Cafe Snack Dominó – $:
  A small family-run eatery in the back streets of Olhão. It is highly rated for its delicious local, home-made cuisine at reasonable prices and friendly service.
  
• Frango da Cidade – $:
  For those looking for a break from seafood, this local restaurant serves traditional piri piri chicken as well as seafood dishes. The set lunch menu at a fixed low price is especially popular.
  
• Cestaria– $$$:
  This unique restaurant combines traditional Portuguese flavors with a modern twist. Known for its artisanal decor inspired by local craftsmanship, the ambiance reflects the restaurant’s focus on authenticity and quality with creative interpretations of regional dishes.
  
• Terra i Mar – $$:
  A cozy eatery offering delicious seafood dishes and traditional Portuguese meals at a reasonable price.
  
• Casa de Pasto do Carmo – $$:
  A family-run restaurant specializing in Algarvian cuisine, particularly fish stews and grilled octopus.
  

Cataplana – A traditional Portuguese seafood stew named after the brass dish it is made in

Olhão Hotels and Where to Stay

Olhão’s has various accommodation options to suit all budgets. The town’s proximity to the Ria Formosa means many hotels have beautiful views of the Natural Park as well as their own attractive amenities. Some examples include:

1. Real Marina Hotel & Spa – $$$$:
   This sophisticated, 5-star hotel is known for its fantastic waterfront views, modern amenities, and proximity to the marina. The hotel also features comfortable, stylishly decorated rooms, a full-service spa and indoor and outdoor pools.
   
2. GuestMar – $$$:
   A mid-range adults-only guesthouse with comfortable rooms, excellent service, and a central location close to the waterfront.
   
3. Hotel Cidade de Olhão – $$:
   An affordable, modern hotel within walking distance of all the town’s amenities. Guests undeniably love the relaxing pool area and welcoming staff.
   
4. Pure Formosa Concept Hotel – $$$:
   A chic and eco-friendly hotel in a central location. The rooftop pool area offers stunning views over the Ria Formosa.
   
5. Quinta dos Poetas Nature Hotel & Apartments – $$:
   This family-friendly hotel just outside Olhão is located in a tranquil and rural setting. It offers spacious rooms, a fitness center and an outdoor pool.

Where to Live in Olhão, Algarve

Olhão has increasingly become an appealing destination for real estate investment, particularly for those seeking authentic Portuguese charm alongside the Algarve’s natural landscapes. Property values in the area have increased as more expats, retirees, and investors are drawn to Olhão. Yet, prices remain comparatively affordable next to neighboring towns like Faro and Loulé. In central Olhão, one-bedroom apartments are priced from approximately €120,000 to €180,000. Larger homes or villas start at around €250,000, reaching upwards of €1 million for luxury properties near the coast or offering prime views.

A variety of apartments and townhouses are available, many of which have undergone modern renovations, meeting the high demand from international buyers. The extensive investment in Olhão’s infrastructure, particularly around the marina, is expected to further boost property development. In order to meet the increasing demand, there are many new, high-end apartments and townhouses on the horizon. Despite these upgrades, prices are likely to remain below those in the Golden Triangle, offering investors a more accessible option within the Algarve’s property market.

Get in touch with us at Algarve Addicts if you’d like some help relocating and finding a property:

Conclusion

Olhão’s traditional character, combined with investment potential and an ever-growing selection of amenities, make it an increasingly popular choice among those looking to settle in the Algarve. With ongoing development and careful preservation of its rich heritage, Olhão offers a unique blend of the old and new, appealing to both locals and newcomers.