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Christmas & New Year in Algarve: The Complete 2025-2026 Guide to Christmas Markets & Events

Updated: Apr 5


As the festive season approaches, the Algarve transforms into a winter wonderland, offering a unique blend of traditional and contemporary celebrations. From charming Christmas markets to vibrant New Year events, the Algarve is the perfect destination to soak in the holiday spirit. Here’s your complete guide to making the most of Christmas and New Year in this stunning region.


From east to west, the Algarve is adorned with enchanting Christmas markets, each more festive than the last. These markets offer much more than just stalls and twinkling lights, ensuring a delightful experience that will get you into the holiday spirit. Here are some of the most notable ones:


Christmas Markets:


Lagos Christmas Village

The Lagos Christmas Village features concerts, workshops, storytelling sessions, Santa’s Grotto, a craft market, an ice rink, an animated nativity scene, and plenty of festive lights. This market promises fun for all ages.


Portimão Christmas Market

Known for its vibrant atmosphere, the Portimão Christmas Market is a strong contender for "best in the country." It boasts 50 shows and themed parades throughout December and into January, making it a must-visit.




Carvoeiro Christmas Market

Held in a square practically on the beach, Carvoeiro’s Christmas market combines seaside charm with festive cheer. Accessible via a fun tourist train, it offers a packed events program, including archery, dancing, painting, circus skills, and even a cotton candy workshop.


Vila Vita Biergarten Christmas Market, Porches

For a unique experience, the Vila Vita Biergarten Christmas Market in Porches offers a traditional German Christmas market atmosphere, complete with German food, beer, and charming stalls.




Monchique Christmas Market

Inland, the Monchique Christmas Market is known for its local spirit, medronho. Be sure to sample this delicacy as you browse traditional crafts and regional foods, immersing yourself in the local culture.


Loulé Christmas Market

Towards the eastern Algarve, the Loulé Christmas Market sprawls across the old town, drawing visitors with its rides, stalls, and fun events. It's a festive hub perfect for families.




Quinta do Lago and Vale do Lobo Christmas Markets

Lastly, two of the Algarve’s most prestigious luxury resorts, Quinta do Lago and Vale do Lobo, host their own Christmas markets. These markets promise a delightful day of Christmas shopping in a luxurious setting.




Where to stay in Algarve

Algarve, Portugal's sun-drenched gem in the Algarve, lures travelers with its golden beaches, vibrant nightlife and charming old town.


  • The Grande Real Santa Eulalia Resort & Hotel Spa is a modern 5-star oasis above Santa Eulália Beach that combines elegant design with top-notch amenities. Prices range from €150-250 per night for spacious double rooms or suites with balconies, some of which have sea views and bathtubs, while the spa, four pools and direct beach access keep you close to water sports and the lively scene of Praia da Oura, just a 10-minute walk away. The Strip's nightlife and shops are just a 5-minute drive away, perfect for a luxurious coastal getaway.


  • Located in Albufeira's Old Town, Hotel Baltum is a vintage-chic property, a historic gem near Pescadores Beach that has been welcoming guests since the early 20th century. For €80-120 per night, choose from cozy double rooms or apartments with kitchens, just steps from the bars and boutiques of Rua Cândido dos Reis. Just a 2-minute walk from the beach and a short stroll from the markets of Old Town Square, it offers a nostalgic stay with modern comforts.


  • A chic mid-range option is Vila Petra, a modern apartment-style hideaway in the Montechoro district, a 5-minute drive from the hustle and bustle of the Strip. Prices range from €70-110 per night for studios or one-bedroom suites with kitchenettes and balconies, close to the shopping and dining of Avenida Sá Carneiro. A 10-minute drive to Praia da Oura and an on-site pool make it a versatile base for explorers.


  • Hotel Eva has been offering vintage elegance on Faro's marina since the mid-20th century, a 4-star classic with rates from €90-150 per night for double rooms or suites with balconies overlooking the Ria Formosa. The shops and restaurants of Rua Dom Francisco Gomes are a 2-minute walk away, and the beach is a short 10-minute drive.


  • Hotel Faro & Beach Club combines modern comfort with a central location, a sleek 4-star option at €80-130 per night for airy double or twin rooms, just steps from the Old Town's cathedral and the marina's nightlife. Its rooftop terrace and shuttle to Praia de Faro (5km away) keep you connected to the beach and shopping fun.


  • A charming vintage budget stay in downtown Faro, Residencial A Doca is a quaint guesthouse offering simple double or twin rooms for €40-70 a night, just a stone's throw from the cafes and shops of Rua Conselheiro Bívar. A 15-minute drive to the beach and proximity to the marina's boat tours make it a cozy base for explorers.



Christmas & New Year Events

Monchique Walking Festival 2024

Date: Friday, November 29th to Sunday, December 1st, 2024

Location: Monchique, Algarve


Experience the verdant beauty of Monchique during the annual Monchique Walking Festival. From November 29th to December 1st, 2024, immerse yourself in the lush greenery, country trails, and scenic hillsides. The festival includes workshops, performances, talks, and, of course, plenty of great walks. Discover the rich traditions, culture, and history of this stunning region while enjoying a fantastic outdoor adventure.


Portuguese Guitar Recital

Date: Tuesday, December 3rd to Thursday, December 26th, 2024

Location: Arco da Vila Interpretation Centre, Faro, Algarve


Enjoy 30-minute Portuguese Guitar concerts in Faro, held every Sunday to Thursday at the Arco da Vila Tourist Office. These live performances by musician João Cuña offer a perfect introduction to the iconic 12-string Portuguese guitar and Portuguese music. Immerse yourself in the rich musical tradition of Portugal with these short, engaging concerts.


Paderne Medieval Festival

Add Some Medieval Fun to Your Holiday Season

Date: Saturday, December 28th to Wednesday, January 1st, 2025

Time: 12:00 PM to 9:00 PM

Location: Paderne, Algarve


Step back in time to the 14th century at the Paderne Medieval Festival. Enjoy troubadours, battling knights, historical re-enactments, and plenty of entertainment. This festival transforms the typical village of Paderne, with its ancient castle, into a lively medieval scene over the Christmas and New Year period.



Carpe Nox 2024/2025: The Biggest Party of the Year!

Celebrate the New Year with unparalleled excitement at Carpe Nox 2024/2025, the biggest party of the year in Albufeira.

Date: Saturday, December 28th

Location: Algarve, Albufeira


Join thousands of revelers for an unforgettable night filled with spectacular performances, vibrant music, and a mesmerizing fireworks display. Albufeira transforms into a festive paradise, offering a perfect blend of celebration and holiday spirit. Don’t miss out on this electrifying event that promises to be the highlight of the holiday season in the Algarve.

Conclusion


The Algarve’s Christmas markets are a testament to the region’s festive spirit, offering diverse experiences that blend traditional charm with modern festivities. Whether you're enjoying a seaside market, a luxurious resort event, or a traditional village celebration, the Algarve ensures a memorable holiday season.

 
 
 

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