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Albufeira is very good and very economical for eating out.
The old town and the strip are the two main centres, and have the usual restaurants selling grills. Don't under estimate just how good the grills are, especially the fish and the chicken. Budget 35 Euros per night for good quality food. The fish is, as you would expect, fantastic.
For something a little more special and a little more expensive try Tres Palmares (Three Palms). The Steak House above Wild & Company at the extreme beach end of the Strip is one of the most stylish restaurants around, excellent for that "posh" meal for a special occasion, in Britain you'd pay double for the type of service you get here. For Chinese, try the Golden Garden on the Strip ,Its worth while finding the HAPPY HOUSE 9.45 euros all you can eat buffet !! All the locals know it ask for directions.
If you like a typical English breakfast at a great price try "The Cottage" or "The English Kitchen" on the little square near the 60's bar at the top end of the strip.
Another good Portuguese restaurant at the top of The Strip is "Os Compadres" Tourist menu 8 euros for 3 courses, coffee & Wine.
For Dutch international kitchen go to Hollandaise, just across the taxi rank next to the strip.
Don't stick to the Sardines and Piri Piri Chicken, which although good generally are a little same. The sea bass is a favorite. Watch out for restaurant El Rancho on the end of the strip.
For Indian food, the best to go is the recently opened Simran Palace, The Clay Oven or the Bombay Palace also next to the taxi rank next to the strip.
Albufeira Old Town has some great restaurants:
The best one on the square is Bravo, the food is fantastic and very good value for money, a meal with drinks will set you back about twelve pounds per person and the service is first class.
But if you get off the square and look at the smaller restaurants behind the square ( tunnel street ). you will find many restaurants do tourist menu's from 5 euros per head at lunchtime to 10 euros per head at dinner including wine an excellent one being O' Veleiro,.If you really want to capture the Algarve life make you way to FISHERMANS BEACH there you will find many beach restaurants all overlooking the sea ,the most exclusive is THE RUINA ,exclusive because of it´s prices!!! 70 to 80 euros at least! Once again you will pay for high profiled positioned restaurants, go one road back and and you will eat for a fraction of the front restaurants.