The best area to stay in Ferragudo is the village centre and the surrounding hillside for direct access to its charm and convenience.The village centre of Ferragudo is built around a charming square, Praça Rainha Dona Leonor, and extends down to the Arade River waterfront. It's a compact area with cobbled streets, traditional white-washed houses, and a selection of local restaurants and cafes. The main church, Igreja de Nossa Senhora da Conceição, sits atop a hill offering good views. This area is very walkable and provides a traditional Portuguese village experience.For couples, staying within the village centre offers a romantic setting. You'll be steps away from intimate dining experiences along the waterfront and can easily enjoy evening strolls through the historic streets. It's also convenient for catching a water taxi across to Portimão for more dining options or a different view.Families will find the hillside areas just above the village centre particularly appealing. Many villas and apartments here offer more space and often come with private pools and stunning views over the river and ocean. You're still only a short walk down to the village square and Praia da Angrinha beach, which is calm and ideal for children.