The tourism market in the Algarve is booming in 2025 and spurring demand for short-term rental properties along the coast. In prime locations such as Albufeira, Vilamoura, and Tavira, occupancy rates are soaring, notably in villas and apartments with sea views. Property owners are trying to capture this trend by adding luxury features to their rentals, with private pools, concierge services, and eco-friendly designs. For investors, 2025 is shaping up to be the golden year for high-yielding rental opportunities in the Algarve.