Christmas Markets in the Algarve
Your Guide to Sun-Kissed
Christmas Market Magic
If you’re dreaming of a Christmas wrapped in snow, woolly hats, and frosty windowpanes, the Algarve may not be the place for you. However, if you’ve had enough of wearing layer upon layer and actually want to feel the tip of your nose come to life again while enjoying all the Christmas magic – twinkling lights, mulled wine, and bustling Christmas markets – Southern Portugal may just be your dream Christmas destination!
It’s safe to say the Algarve transforms in December: palm trees glow with fairy lights, towns host vibrant Christmas fairs, markets, and events, and you’ll be spoiled for choice of delicious seasonal treats. In fact, only steps from the warm elegance of LUX MARE, Lagos’ old town is heaving with festive cheer that thrives just as brightly under southern Portugal’s winter sun… And the best part? Many Christmas markets in the Algarve stay open well beyond Christmas Day, letting you stretch your festive spirit into the New Year. It’s the perfect excuse to extend your stay, or to plan a post-holiday escape that still includes lights, music, and seasonal treats.
Read on to find out all about the best Christmas markets in the Algarve, all within easy reach of LUX MARE, and why a warm, coastal Christmas might just become your new tradition.
Christmas Markets Near Lagos
Lagos Christmas Market
Walking from your luxury villa towards Lagos’ historic centre, the festive atmosphere starts gently, pulling you in with every note of music and waft of deliciousness.
The Lagos Christmas Market is by far one of the region’s most charming: intimate, lively, and unmistakably local. Wooden huts line Praça do Infante, selling handmade crafts, traditional sweets, and plenty of Algarve specialities. Think fig cakes, almond treats, and even the occasional mulled wine stand (because some traditions should definitely follow you to the beach), not to mention regional “medronho” brandy, which you’ll have to sample for yourself. A Christmas village, plays of all sorts, live music, crafts, food, workshops, an ice rink (real ice, warm weather – yes, it works!), Santa’s Grotto, train rides, and family fun give the market a cosy feel, and the best part? You can enjoy it without juggling gloves, scarves, and frozen fingers.
Oh, and if you want to see something impressive, head to the Lagos cultural centre to take in a nativity scene made up of a whopping 275 people, 368 animals, and 38 little houses. It’s certainly worth a visit!
Portimão Christmas Village
A short coastal 20-minute drive brings you to Portimão’s transformation into a full festive village, also known as a “Christmas Dream”. Expect a lively Christmas market that draws larger crowds than Lagos, a skating rink, a giant Christmas tree, a life-sized nativity scene, daily live music, a Christmas train, “Santa’s workshop”, and performances throughout the season.
Stalls offer everything from Portuguese pastries to international Christmas classics, making you feel comfortingly close to home, just with palm trees instead of snowdrifts.
Alvor Christmas Market
Only 25 minutes away, Alvor’s market is smaller but wonderfully atmospheric. Wander through the cobbled streets filled with local crafts, nativity scenes, and live music. It’s the perfect stop if you want a relaxed evening market with a community feel, ideal for families or couples seeking something slower and more traditional.
Lagoa & Carvoeiro Christmas Markets
Lagoa’s annual Christmas market is known for its artisan talent, showcasing local jewellery-makers, ceramicists, and gourmet products. If you’ve been hunting for thoughtful gifts to take home, this is the place.
Carvoeiro, meanwhile, lights up its beachfront square with holiday stalls and musical performances – there’s something undeniably joyful about looking at the ocean while listening to Christmas tunes. Wouldn’t you agree?
Albufeira Christmas Market
For visitors wanting a bit of spectacle, Albufeira, 45 minutes away, offers one of the best Christmas markets in the Algarve. Expect themed zones, festive food from around the world, children’s entertainment, and twinkling light displays that spill into the old town. It’s lively, colourful, and perfect if you want a more energetic festive setting.
Festive Comforts at LUX MARE
Staying at LUX MARE during the holidays gives you an extra layer of indulgence. If you’d rather keep festivities private, our concierge can arrange a private chef to prepare all your favourite home-comfort Christmas dishes, perhaps with a couple of Portuguese delicacies added in, from bacalhau to almond treats.
Prefer something warm to sip? Mulled wine isn’t unheard of here, nor is a Baileys hot chocolate. You can enjoy all the comforts of home, just without the cold, the slush, and (dare we say it?) the inevitable holiday squabbles with extended family. Add a mild beachside walk to that equation, and it’s no wonder more visitors are trading in their snow boots for sandals.
So, are you ready to celebrate Christmas the Algarve way?






