Barometer Dashboard

Algarve business areas.

An overview of the business-area network, its profile, and the factors that shape regional competitiveness.

Profile study · 2018 data
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Key indicators

business areas identified

75

business areas profiled in detail

34

businesses operating

≈ 1 000

business land area

≈ 1 000 ha

average area per business area

15 ha

average businesses per business area

29

businesses in wholesale and retail trade

58%

investment approved under incentive schemes

20 M€

Methodology. The study profiles 34 business areas in detail, from 75 areas identified in the Algarve. Indicators should be read as a 2018 reference snapshot, not as current availability of plots or occupancy.

Context

Business Accommodation Areas (AAE) — industrial, business, commercial and service zones and parks — are the Algarve’s principal infrastructure for business location. By concentrating serviced land, accessibility and support services, they create conditions for businesses to establish, relocate and grow. They are a key instrument for spatial planning, regional economic diversification, and retaining jobs and investment beyond the traditional tourism and real-estate sectors. This dashboard brings together the main indicators on Algarve AAE, based on the Study to Identify Critical Competitiveness Factors for Algarve Business Accommodation Areas (AMAL / Algarve REVIT+ Project). It covers the network’s territorial reach, the profile of the areas, the installed business base, critical competitiveness factors, business views and investment mobilised, complemented by a directory of the profiled AAE.

Network and territorial distribution

The distribution of business areas in the Algarve.

The 75 identified business areas are distributed across the Algarve’s 16 municipalities; the study profiles 34 in detail.

Business areas by municipality

business areas
  • Silves5 business areas
  • Faro4 business areas
  • Albufeira3 business areas
  • Lagos3 business areas
  • Loulé3 business areas
  • Olhão3 business areas
  • São Brás de Alportel3 business areas
  • Lagoa2 business areas
  • Portimão2 business areas
  • Vila Real de Santo António2 business areas
  • Alcoutim1 business areas
  • Aljezur1 business areas
  • Tavira1 business areas
  • Vila do Bispo1 business areas

Study universe: 34 business areas. The 75 identified business areas are distributed across the Algarve’s 16 municipalities. Source: AMAL / Algarve REVIT+, 2018.

Area profile

Location and size of business areas.

Around one-third of business areas are located along the EN 125 and another third north of the A22; more than half cover less than 10 ha.

Location type

%
  • North of the A2232.4 %
  • Along the EN 12532.4 %
  • Urban areas17.6 %
  • Other locations17.6 %

Location type and size classes of the 34 business areas. Source: AMAL / Algarve REVIT+, 2018.

Area size

%
  • Less than 10 ha52.9 %
  • 10 to 20 ha26.5 %
  • 20 ha or more20.6 %

Location type and size classes of the 34 business areas. Source: AMAL / Algarve REVIT+, 2018.

Installed business base

The specialisation of business areas.

Wholesale and retail trade have the strongest presence among establishments operating in business areas.

Business sectors in place

%
  • Wholesale and retail trade57.9 %
  • Manufacturing21.7 %
  • Construction9.4 %
  • Accommodation and food services7.6 %
  • Transportation and storage6.3 %
  • Administrative and support services5.7 %
  • Professional, scientific and technical activities5 %
  • Real estate activities3.8 %
  • Water supply and treatment3.6 %
  • Other services3.2 %

Distribution of businesses operating in the 34 business areas by sector (% of establishments; multiple CAE response). Source: Algarve Acolhe Platform / Study, 2018.

Competitiveness

Critical competitiveness factors.

Assessment of external and internal factors helps identify the network’s strengths and weaknesses.

External competitiveness factors

/ 5
  • Distance to an A22 interchange4.24 / 5
  • Proximity to R&D units3.28 / 5
  • Municipal support office3.18 / 5
  • Distance to the airport3.18 / 5
  • Business density / dynamism3.06 / 5
  • Local origin of businesses3 / 5
  • Regulations defining permitted activities2.29 / 5
  • Active investment attraction2.12 / 5

Assessment of external competitiveness factors for business areas. Accessibility to an A22 interchange stands out; active investment-attraction policies are the weakest point. Source: 2018 Study.

Internal competitiveness factors

/ 5
  • Plot development3.65 / 5
  • Roadways3.29 / 5
  • Basic sanitation3.24 / 5
  • Energy networks3.12 / 5
  • Signage2.94 / 5
  • Land price / m²2.94 / 5
  • Fibre optic and internet1.94 / 5
  • Incubation centre1.41 / 5

Assessment of internal factors. Traditional factors predominate; communication networks and incubation services receive the lowest scores. Source: 2018 Study.

Business perspective

Advantages and challenges towards 2025.

Businesses operating in these areas highlight accessibility, infrastructure and talent as decisive factors.

Valued location advantages

/ 5
  • Accessibility2.97 / 5
  • Internal infrastructure2.92 / 5
  • Internet access2.73 / 5
  • Fibre optic and virtual networks2.59 / 5
  • Energy availability2.51 / 5
  • Municipal support office2.11 / 5
  • Condominium management1.68 / 5

Competitiveness factors most valued by businesses operating in business areas. Source: Survey of businesses in AAE, 2018 Study.

Challenges by 2025

/ 5
  • Market demand dynamics3.3 / 5
  • Attraction of skilled workers3.27 / 5
  • Product and technological innovation3.22 / 5
  • Qualified networks and partnerships3.16 / 5
  • Declining household income2.84 / 5
  • Growing social problems2.76 / 5
  • Fewer employment opportunities2.68 / 5
  • Business relocation2.32 / 5

Challenges identified by businesses, with attracting and retaining skilled workers standing out. Source: Business survey, 2018 Study.

Business Accommodation Areas Directory

The 34 business areas profiled in detail.

Areas ordered by the competitiveness index: the average of internal and external factors, on a scale from 0 to 5. The regional average is 2.36.
1 Área Industrial, Comercial e de Serviços de Loulé Loulé 56.18 124 Public 3.95
2 Mercado Abastecedor da Região de Faro — MARF Faro 29.88 32 Public 3.55
3 Centro de Empresas e de Serviços de Vilamoura Loulé 17.14 79 Public 3.25
4 Área Municipal Empresarial do Chinicato Lagos 3.86 19 Public 3.14
5 Área Empresarial de Marim Olhão 10.82 21 Public 3.09
6 Zona Industrial da Feiteirinha Aljezur 15.38 14 Public 3.05
7 Zona Industrial de Olhão Olhão 20.93 90 Public 2.82
8 Espaço Industrial de Pateiro / Parchal Lagoa 18.25 36 Private 2.73
9 Área Empresarial do Chinicato Lagos 5.47 16 Private 2.64
10 Área Empresarial da Marateca Lagos 7.23 36 Private 2.64
11 Espaço Industrial de Algoz Silves 58.67 13 Private 2.62
12 Espaço Industrial de Cordeiros Silves 4.40 19 Private 2.48
13 Algarpark — Parque Empresarial Silves — — Private 2.43
14 Área Empresarial de Pedra Mourinha Portimão 12.88 14 Public 2.41
15 Área Empresarial de Coca Maravilhas / Vale da Arrancada Portimão — — Private 2.41
16 Área Empresarial de Tavira Tavira 25.72 5 Public 2.41
17 Área Industrial de Vila Real de Santo António V. R. de Sto. António 4.95 49 Public 2.23
18 Zona Comercial e Industrial do Areal Gordo Faro 5.85 11 Private 2.18
19 Área Industrial do Ameiro / Vale da Venda Faro 17.20 14 Private 2.14
20 Zona Comercial e Industrial de Pontes de Marchil Faro 16.85 24 Private 2.14
21 Espaço Industrial de Tunes Silves 5.33 7 Private 2.10
22 Espaço Industrial de Alcantarilha Silves 12.70 42 Private 2.10
23 Área Industrial e Comercial de Belmonte de Baixo / Torrejão Olhão — — Private 2.05
24 Zona Industrial das Quatro Estradas Alcoutim 3.24 5 Public 1.95
25 Parque Empresarial do Algarve Lagoa 3.20 50 Private 1.91
26 Zona de Comércio, Indústria e Serviços de Vale Paraíso Albufeira 14.66 61 Private 1.86
27 Zona de Comércio, Indústria e Serviços da Guia Albufeira 43.76 48 Private 1.82
28 Zona Industrial de Boliqueime Loulé 4.50 6 Public 1.82
29 Zona de Comércio, Indústria e Serviços de Vale de Sta. Maria Albufeira 4.48 17 Private 1.77
30 Zona Industrial de Barrabés S. B. de Alportel 5.63 9 Private 1.74
31 Zona Industrial dos Almargens S. B. de Alportel 6.65 4 Private 1.74
32 Zona Industrial da Mesquita Baixa S. B. de Alportel — — Private 1.74
33 Espaço Industrial da Ponta da Areia V. R. de Sto. António — — Private 1.73
34 Área Industrial de Vila do Bispo Vila do Bispo 2.94 15 Public 1.58
  • “Public” management means municipal management (MARF is managed by a public company); “Private” means private or partially private management, and most business areas do not have a structured management body.
  • Area (ha) and business count are unavailable for some areas in the study tables (shown as “—”); the regional total is approximately 1,000 ha and 1,000 installed businesses.

Sources and resources

Sources, methodology and downloads.

Source: Study to Identify Critical Competitiveness Factors for Algarve Business Accommodation Areas — AMAL / Algarve REVIT+ Project, October 2018.
Source: Algarve Acolhe Platform, Personnel Records (GEP/MSESS), and the Algarve 21 and CRESC Algarve 2020 operational-programme databases.
Download: Algarve Business Areas Study (PDF) Related link: Algarve Acolhe Related link: Algarve Business Areas Network