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The Algarve - where to rent a villa

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My wife and I are planning a trip to the Algarve region of Portugal this summer. We will have a group of six, varying in age from 28-65. We would like to spend time beaching it, but also tour the countryside. Given the fact that some of us would like to spend more time at the beach, while others would like to be more active hiking and touring, as well as activiteis at night - does anyone have suggestions for best villages to rent a villa in?

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