The origins of Albufeira date back to prehistory, likely beginning as a maritime outpost. The Romans, who named it Baltum, established infrastructure such as aqueducts, roads, and bridges, and promoted agriculture and commerce. Following the Roman Empire's fall, the area was controlled by the Visigoths and later, in the early 8th century, conquered by North African Muslims. The name Albufeira derives from the Arabic "al-Buħayra" (البحيرة), meaning "the lagoon."
The Moors fortified the region, making it one of their last strongholds in Portugal. They advanced agricultural practices by introducing new techniques, irrigation, and transforming the landscape into fertile gardens and orchards.
Middle Ages
The Christian conquest of Albufeira began in the late 12th century. By the time Afonso III took the throne, most of the Algarve was under Christian control, though Albufeira resisted until 1249, when it fell to Afonso III's forces following the capture of Faro. The town was then given to the Order of Aviz in 1250. After its conquest, the Moors were pursued and trapped in a cavern now known as Cova do Xorino. Albufeira became part of the Kingdom of Portugal, and King Manuel I granted it a charter on August 20, 1504.
18th and 19th Centuries
Albufeira was heavily damaged by natural disasters, particularly the 1755 Lisbon earthquake, which caused 10-meter (33-foot) waves to devastate the town, leaving only 27 buildings standing, all in ruins. The parochial church collapsed, killing 227 people. Reconstruction efforts were hindered by continued aftershocks until 1756.
In 1833, during the Liberal Wars, Albufeira was attacked by Remexido's anti-liberal forces, resulting in significant destruction and loss of life. The town later grew through the expansion of the fishery, commemorated annually by the 'Festival de Peixes,' honoring the fishing industry that contributed to the town's development.
In the early 20th century, Albufeira's economy was driven by fish and nut exports, with five factories employing 700-800 people, mainly fishermen's wives. However, between 1930 and 1960, the local economy declined, leading to factory closures, a reduction in fishing boats, and abandoned homes. The population halved, and fishing became a subsistence activity.
In the 1960s, Albufeira began transforming into a tourist hub, expanding into the surrounding hills to accommodate thousands of the 5 million tourists who visit the Algarve each year.