Hello! We will be in the Algarve during the week between Christmas and New Years. I’ve heard that some of the cities shut down less than the others and we’re thinking of Albueifera or Lagos. Any recommendations about one versus the other? TIA!!

Lagos, as I mentioned on your other thread.
Sagres vs Tavira

This is a lengthy description that for me, at least, seems quite accurate, describing the difference between Lagos and Albufeira.

https://www.travellerselixir.com/lagos-vs-albufeira/.

For that week between Christmas ad New Year, it will be very quiet along the Algarve , especially in the towns geared up for tourism. Lagos will be virtually deserted and Albufeira is your only logical choice apart from Faro.

According to what I've been reading these past few weeks in the Portugal News and Portugal Resident newsletters, it appears that Lagos this year won't be virtually deserted, as the Algarve is expecting a good amount of tourism over the holidays, even though it's low season.

https://www.theportugalnews.com/news...new-year/84051

https://www.myguidealgarve.com/trave...in-the-algarve

Lagos will have a Christmas market but it runs only until Dec. 24.
https://www.portugalresident.com/lag...ember-1-to-24/

The Portugal Resident gives a breakdown of what will be going on during the holidays in Lagos here-
https://www.theportugalnews.com/news...new-year/84051

Although it may or may not fit your budget, the Cascade Wellness Resort does have a Christmas-New Year's package
https://www.cascaderesortalgarve.com...liday-specials