Cabanas de Tavira
Cabanas is a typical holiday town, but it does offer some nice areas for you to explore. Take the boardwalk and continue at the end on the path that runs along the Ria Formosa. When the tide is low, you can walk a long way enjoying the peace and quiet of the Ria. Same to the other side, step out of the appartment and from the roundabout onto the beach for a walk on the sand.
Tavira
A little gem.... Great relaxed atmosphere, but always lively. Visit the castle, walk up to the train station and back to the Gilao river, across the bridges or along the river to the local market. Also nice to walk all the way to Quatros Aguas (or Forte do Rato on the other side of the river) through the salt pans, where the river meets the Ria Formosa and the sea. You can also do this trip by boat, great to do at dawn or sunset.
Algarve towns
Vila Real (VRSA) is worth a visit for its particular architecture and set up. Nice views over the Guadiana river towards Spain. Closeby Castro Marim is also worth a visit with its 2 fortresses and salt pans.
Cacela Velha can be reached easily by bike (half an hour). It offers a unique atmosphere and views over the Ria and ocean. You can walk down and cross the Ria at low tide, boat service also available during the season. Or walk to Fabrica for a coffee and back. Or sit on a bench by the church and soak up the sun and the incredible views...
Olhao is worth a visit for its markets (come in the morning!!!), old town, restaurants, harbour. Great boat trips towards the islands possible.
Loulé is a bit inland and combines well with a half day shopping in the Faro shopping malls. Relaxed town still occupied by locals.
Just west of Faro you will find some of the more 'posh' areas : Quinta do Lago, Vale do Lobo and a bit further on, Vilamoura. Plenty of golf courses, high class hotels and villa's, great yachts in Vilamoura. Drive on to Silves, another lovely inland town with a rich history and enjoyable to walk through, or further on to Monchique, a famous spa resort.
Further on across the coastline you get to the cliff area, with secluded beaches and a mixture of larger and smaller towns but all with a bit more popular holiday hotels and animation. Feragudo is nice as are the cliffs and beaches from Albufeira to Portimao and further on.
Sagres is the last town before the most Western and rugged point of the Algarve (cabo de sao vicente) and well known as a surfer town with a great fortress and daunting cliffs.
Alentejo
If you dare to go a bit further for a day trip or even a few days, consider visiting the Alentejo, the region just north of Algarve.
In the east you can drive up along the Guadiana river to Alcoutim (take the death ride over the river across the border) and Mertola which is definitely worth the visit. From there you can go to Minas de Sao Domingos (picture), an old mining town where you can walk through the mining remains that will make you feel like travelling back in time. From there it is a beautiful ride through the Alentejo landscape (especially during spring season) towards Serpa and Beja (highly recommended). Between Minas and Serpa you can follow the signs to 'Pulvo do lobo'. Return via Castro Verde.
Towards the west you can find one of the most beautifull and unspoilt coast lines with some intriguing towns: Aljezur, Odeceixe, ... linked by the Fisherman's trail. Or go inland to Monchique, a classic spa town in the 'mountains'.
Only 2.5 hrs away
Sevilla
Lisbon
Setubal and Troia peninsula
Evora