Why is it that the long-established second-home resorts in the Algarve have managed to steer mostly clear of the ill winds of the recession?

They may only be separated by 170-odd miles, but when it comes to comparing the fortunes of the two high-end tourism hubs of the Iberian peninsula, it really is a tale of two coasts. As the glitzy Costa del Sol, tarnished by corruption and over-building, limps out of a slump, Portugal's central Algarve quietly treads a smoother path.

Underpinned by modestly leveraged developers and strict planning, it has continued to attract the kind of discreetly moneyed buyers who have been drawn there for four decades. In fact, in the most desirable pocket of coastline, the Golden Triangle-an area spanning the long-established high-end resorts of Quinta do Lago and Vale do Lobo up to the market town of Almancil-demand has slowed little in the global downturn.

Savills report that Quinta do Lago has outperformed the Côte d'Azur, Marbella and the Balearics, and Knight Frank compare static prices in the Golden Triangle with price falls of 30% in the less-developed western Algarve. ‘With its unflashy luxury, top golf courses, uncrowded shores and supreme accessibility [Faro airport is 20 minutes away], the Golden Triangle is still on everyone's wish list if they want to buy on the Algarve and they've got the budget,' says Georgina Richards of Knight Frank.

Apart from the Russians, that is, for whom the sweeping beaches and coastal nature reserves offer no super-yacht marinas or waterfront palaces. ‘The people looking now have had a long-term plan to buy on the Algarve and aren't deterred by the exchange rate,' says Mary Mangan of Winkworth Portugal. ‘They are 50-plus, conservative and aren't going to take a punt on less-established areas. If prices can rise by 5%-6% in a bad market, with momentum picking up, the rise will get into double figures this year.' So, now that everyone agrees that the Golden Triangle offers the safest bet on the Algarve, what is there on offer?

For those who want a luxury golf resort, Savills promote Quinta do Lago. ‘There's always been one masterplan [of 800 plots], so owners and buyers have always known where they stand, unlike Vale do Lobo,' says Alison Hojberg, Savills' associate at Quinta Properties. ‘Our philosophy is that we're just that little bit more discreet, a truly five-star resort. Quinta follows the Mayfair market closely-prices are up again because the demand is there. We only have 25-30 properties for sale.' The entry point is €300,000 for a one-bedroom apartment on the golf course at San Lorenzo; for a four-bedroom villa, it's €2 million; and the very best properties-frontline lake, golf or ocean-command €15 million.

Yet Vale do Lobo-Portugal's largest development- offers a wider range of product in terms of both style and budget (1,500 properties with studios from €245,000 and plots from €1.15 million to €10 million), and it has a greater range of facilities, especially children-oriented ones. ‘Plus, we're a wholly integrated resort, with the security and convenience that brings, and owners are less isolated than those at Quinta,' says Vale do Lobo's Alda Filipe. She says the complex's tennis academy attracts non-golfers, but, of course, such people also buy because golf resorts generally promise greater capital appreciation, as well as better resale potential and higher rental returns. Golfing is especially significant during the Algarve's strong shoulder seasons.

The area also offers extensive watersports, horseriding, colourful local markets, shopping centres and walking or biking (or birding) around the large protected areas, such as the Ria Formosa wetlands. If you can't stomach life on a golf resort, there are more than a dozen small developments nearby, offering detached villas from €1.5 million-or you could gaze down on resort-land from the distant tranquillity and privacy of a home in the hills around the ancient town of Loulé.

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‘For those who intend to spend half the year or more out here and can't afford Quinta, the smaller resorts would be a better option than Vale do Lobo, which is full of hustle and bustle in the summer,' says Mrs Mangan. ‘Varandas do Lago, Vale do Garrao and Quinta das Salinas all have beautiful houses on gated developments -without the extensive facilities you pay heavily for-and Vilas Alvas is especially well located to get to everything.'

Mrs Mangan also recommends The Village, a small development behind Vale do Lobo, where a new four-bedroom villa selling for €2.25 million would fetch closer to €3.95 million if it were on a prime site at Quinta.

Miss Hojberg says Quinta Verde-‘a mini Quinta do Lago with security and attractive villas'-has been very popular, together with Dunas Dourades beach club, where apartments with sea views cost from €720,000 (www.ddbc.pt). ‘It's very good for young families due to its superb location smack on the sand-compared with the larger resorts, where you have to get into the car to go to the beach,' adds Miss Richards.

Having everything within walking distance can be a priority for prospective renters, although Mrs Mangan estimates that only about 10% of owners in the Golden Triangle rent commercially-most don't need to. Miss Hojberg concurs on Quinta, ‘but you can get £10,000 a week if you've got a good-sized villa [six bedrooms, six bathrooms, pool] during July and August'. Vale do Lobo, however, has a much more active rentals side, and two-bedroom apartments tend to let for £800-£900 a week in peak summer.

NEED TO KNOW: Insider tips for the Algarve

Lunch: Try Paixa, Vale do Lobo's sleek new tapas bar and share mini bacalhau and pigs' ears (00 3 51 289 394 699)

Shop: For MaxMara and La Perla, go to Quinta Shopping (at Quinta do Lago), but the market at Loulé is best for local farm produce, crafts and fish

Ride: Trek through olive groves and cork forests on a Lusitano horse from a stables such as British-run Pine Trees (www.pinetreesridingcentre.com)

Dine: A former ambassador's villa accommodates the Michelin-starred Sao Gabriel, one of the region's best restaurants (www.sao-gabriel.com)

Explore: Hire a boat to get to the barrier islands of the Ria Formosa-the Ilha Deserta (desterted island) offers only a simple wooden fish restaurant

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