Monchique and the Serra

Forested mountain terrain above the coastal Algarve, offering cool retreats, thermal springs, and traditional rural life.

The Serra de Monchique, the mountainous spine of the western Algarve, rises to 902 metres at Foia, the highest point in the region. The town of Monchique sits on the forested slopes below the peak, a small, traditional settlement known for its medronho (strawberry tree spirit) distilleries, wooden furniture workshops, and a Sunday morning market. The microclimate is distinctly different from the coast: cooler, wetter, and greener, with chestnut, cork oak, and eucalyptus forests covering the hillsides. Caldas de Monchique, a thermal spa village in a wooded valley below the town, has been visited for its hot springs since Roman times and was revived as a spa destination in the early 2000s. The Serra provides walking and mountain biking trails with views across the Algarve to the coast and north into the Alentejo. The area suffered badly in the 2003 and 2018 forest fires, which destroyed swathes of woodland and threatened the town itself. The population is small and ageing, with young people tending to move to the coast for work. Property is cheap by Algarve standards, but the remoteness and mountain roads mean that this is not a practical base for anyone who needs regular access to coastal services or the airport.