A record number of villas and apartments (both resale and new build) are coming on to the property market in Western Algarve, offering buyers far more choice.

Nick Sadler, Portugal Director for Hamptons International says: "This will have an impact on prices this year as the supply/demand balance tips in favour of purchasers,"

Hamptons predicts an overall increase in property prices of around 7% for the Western Algarve in 2005.