A hostel development plot 400 metres from the beach can offer an appealing Algarve investment because this Ferragudo site combines approved plans with a central coastal location. The plot is priced at €950,000 and includes a 720m² site plus an approved project for a 20-bedroom hostel. The proposed building would provide 60 beds, 20 en-suite rooms and private terraces, giving buyers a clear hospitality framework to evaluate. Its proximity to the beach supports convenient access for holidaymakers, watersports enthusiasts and other leisure visitors. Construction is not included in the purchase price, so a complete investment budget must be prepared separately. The project is designed as a three-storey building with underground parking for 11 cars. Five storage rooms, laundry facilities and service areas are planned to support day-to-day operations. A communal living room could encourage guest interaction and extend the accommodation’s appeal. The ground floor includes six en-suite bedrooms, while the upper floors provide a further 14 rooms. Private terraces give each bedroom an outdoor element suited to the Algarve climate. Ferragudo is a historic fishing town on the mouth of the River Arade. Its low-rise, whitewashed architecture and cobbled streets help distinguish it from heavily developed resort areas. Restaurants, cafés and bars near the riverfront provide walkable dining and leisure options. Praia Grande, Angrinha Beach and nearby coastal spots offer swimming and watersports possibilities. Portimão across the bay contributes access to city services, shops and entertainment. Golf facilities are around 4 kilometres from the plot, broadening the potential visitor profile. Faro Airport is approximately 66 kilometres away, making the location accessible to international travellers. A well-located hostel could potentially generate accommodation income through seasonal stays, group travel and local events, subject to demand and operating permissions. Expected ROI should be calculated using verified rental projections, construction costs, financing and management expenses rather than assumptions. Contact us to review the approved project and assess this Ferragudo investment opportunity.
• Approved project
• 20 en-suite rooms with private terraces
• 60 beds
• Underground parking
• Plot 720m²
• Nearest beach 400m
• The price includes the plot and the approved project but not the construction of the building
Superbly located plot in the heart of Ferragudo with an approved project to construct a 3 story 20 bedroom hostel.
Ferragudo is a small attractive fishing town located on the mouth of the river Arade and has a close nit community of Portuguese and ex pats alike. Impressively, Ferragudo has managed to maintain much of its traditional charm, escaping the typical wholesale development that has invaded the Algarve coast line and surrounding towns. Consisting of typical whitewashed cottages, low rise buildings and a warren of cobbled streets. Located directly on the river front with many cafes, bars and restaurants where you can not only eat the catch of the day but watch it being unloaded. For such a small town there are many focal points including the church which sits prominently on the top of the hill in the center of the town. The 16th century medieval castle, Castelo de Sao Joao located on Angrinha beach. and a cute little lighthouse also set the scene for this quaint, relaxed little town. Ferragudo also boasts an array of fine beaches ranging from small and sleepy to the aptly named, Praia Grande where you can partake in a number of water sports and activities.
The building consists of an underground garage with space for 11 cars and 5 storage rooms. The ground floor has two public WCs, a communal living room, laundry and service and storage areas, 6 individual en-suite bedrooms containing 3 beds, each having its own private terrace. The first floor consists of a further 8 individual en-suite bedrooms with private bathrooms and terraces. There is a further storage room and atrium on the roof.
Amenities
• 8 storage rooms
• Atrium
• Communal living room
Location
• Distance to sea 350m
• Nearest beach 400m
• Nearest golf 4km
• Distance from airport 66km
• Nearest school 1km
• Nearest town 100m
