The Algarve has it all, from million pound-plus luxury villas for sale on the edge of golf courses to apartments for sale at more affordable prices.

For foreigners, the Central Algarve is the most popular area for buying property. The exclusive golf, beach and spa resorts of Vale do Lobo and Quinta do Lago have attracted much attention amongst the rich and famous, but recent changes in the laws on buying property using offshore tax havens has had an adverse effect on real estate and property markets.

In the hills a few kilometres inland, but still only 10 minutes drive from the beach, you can still find old farm cottages and villas for sale, often with spectacular sea views, but at far more reasonable prices.

Perhaps the areas with the most development potential are the Western and Eastern Algarve.

In the past, people were put off buying property in the Western Algarve because of its distance from the airport. Now, with the extension of the motorway westwards, property sales are on the increase and you can find townhouses and villas for sale on the new golf resorts that have been appearing over the last few years.

The Eastern Algarve, although popular with the Portuguese, has strangely been left alone by foreigners buying holiday villas. The area has loads of potential and property developers have only recently started taking an interest in the area. No doubt it won't be long before there are more villas for sale here too.