Loulé is a city and municipality in the Algarve region, Faro district, Portugal. In 2011, the municipality had a population of 70,622 across 763.67 square kilometers (294.85 sq mi). The municipality includes two main cities: Loulé and Quarteira.
Human presence in Loulé dates back to the Later Paleolithic, with significant growth starting in the late Neolithic due to agriculture and herding. The Phoenicians and Carthaginians later established trading posts, boosting fishing, mineral prospecting, and commerce.
After the 2nd century Punic War, the Romans expanded the local economy with canning, agriculture, and mining. Roman occupation is evidenced by remains such as an altar to the Goddess Diana and the villages of Clareanes and Apra. In the 5th century, the Suevians, Vandals, and Visigoths assimilated Roman settlements and cultural practices.
The 8th century saw the rise of the historic Al-'Ulya' (Loulé) under Muslim Moors, who fortified the city. Remnants of this period include the Taipa tower and the bell tower of Loulé St. Clemens Church, originally a minaret of a former mosque, and the Jardim dos Amuados, a former Moorish cemetery.
In 1249, King Afonso III, with the support of D. Paio Peres Correia of the Order of Santiago, conquered Loulé's castle from the Moors, integrating it into the Portuguese Crown. A foral (charter) was issued in 1266, followed by another in 1269 for the southern suburb of Mouraria. The Christian Reconquista negatively impacted Loulé's economy, which had relied on trade with North Africa and Andalusia. To boost the economy, King Denis established a 15-day fair in Loulé.
By the late 14th century, Loulé was in decline, with its castle in ruins. King John I granted privileges to encourage settlement and repair the town's defenses. During Portugal's maritime expansion, Loulé became important in exporting wine, olive oil, dried fruit, and other goods, allowing it to recover economically. In 1422, the town's walls were rebuilt, and in 1471, the first hospital in the Algarve was established.
Throughout the 16th century, Loulé faced threats from pirates and saw its castle fall into ruin. Despite economic decline, new constructions, including churches and hermitages, continued. After the Restoration, the castle's role became more defensive, with new buildings surrounding it.
In the early 19th century, political instability from the Napoleonic Wars, the monarchy's flight, and the Liberal Wars led to an economic crisis. To address this, Finance Minister Mouzinho da Silveira ordered the sale of national assets and the expropriation of convents. As a result, the Convent of Espírito Santo, closed since 1836, was converted into the municipal hall and a theater. Residential and commercial development expanded around the old castle, with major changes like the opening of Avenida Marçal Pacheco, which connected the east and west, leading to the demolition of parts of the Carmo hermitage and the castle wall.
By 1885, the town's main social and economic activities centered around Rua da Praça (now Avenida Praça da República), where the municipal council was relocated. At the end of the 19th century, Loulé expanded westward, leading to urbanization in Quinta do Olival de São Francisco and the creation of the new parish of São Sebastião in 1890. This growth, driven by industrialization, attracted new residents and was supported by improved transportation, including railways and communication lines.
Before the First Republic, many key architectural structures were built in Loulé, including the municipal market designed by architect Mota Gomes. This project significantly altered the town, leading to the partial destruction of the castle. The opening of Avenida José da Costa Mealha had a major impact on Loulé's logistics and architecture.
During the Estado Novo period, the town saw improvements in public lighting, water supply, and drainage systems. After the 1926 military coup, Loulé's growth continued moderately, with modernization efforts focused on Avenida José da Costa Mealha (now Avenida 25 de Abril). This spurred the construction of notable buildings like the Cine-Teatro Louletano and the Duarte Pacheco monument. Large residential blocks soon replaced old agricultural properties and traditional architecture to the northeast and south of the avenue.