Moved by a passion for updating antiquated buildings with richly detailed backstories, the creative Portuguese architectural studio Atelier Rua completed Casa Três, a soulful former merchant’s home at the pedestrian heart of a historical seafront village in the Algarve. The third home in a portfolio curated by The Addresses, the courtyard residence stands as a sun-saturated oasis and a contemporary reinterpretation of its polished past.

Nostalgia lovers will find their pleasure inside this refined villa for rent in Portugal. Once the residence of an enterprising merchant, it is now understated and elegant, a bright, stylish redo that woos with warm, dashing ambiance. Here, old world charm melds with cool, modern furnishings handpicked by Studio Stories, and subtle structural updates breathe new life into the dapper vintage space.

Terrazzo floors and countertops give a nod to the home’s illustrious past. A newly polished central courtyard with a dark bottomed pool, citrus-shaded outdoor dining table and row of chaise loungers offer pure, 21st-century comfort. The handsome, dark-wood-accented living room and kitchen are spacious, ambient and open to the outdoors via multiple balconies. Bedrooms and ensuite baths have been reconfigured around the central courtyard, each richly appointed room complemented by spare décor in a deep, sensual palette. And multiple roof terraces, each unique, add to the sense of unwinding with ease and sophistication.

The award-winning minimalist architects of Atelier Rua know a thing or two about taking heritage properties to the next level, creating spaces that maintain an intensely personal ambiance, touched by nostalgia and combined with careful curation and luxuries more typically found in boutique hotels. Casa Três follows in the footsteps of Casa Um, Casa Dois and Casa Quatro, each home recounting its own tale of a bygone era interpreted through a modern lens—places where materials, locations and local flavor give the properties their new raisons d’être.

AROUND

This villa for rent in Portugal is located in the furthest eastern point of the southern Algarve region, with Spain just across the Guadiana River. The historical community in which it is found is Vila Real de Santo Antonio, a sun-saturated harbor town with a pedestrian center. A true remnant of a slower, easier time, the village remains alive and evolving, its streets lined with art and enterprises, and its busy central square and surprisingly urban downtown earning the town its moniker of the “Little Lisbon of the Algarve.” A small marina marks the coastal waterfront at Vila Real, where beaches extend to the south and west, including those along the Cacela Velha, where succulent oysters and rich cataplanas, or aromatic fish stews, are served from waterfront cafes. 

The region’s notable Fábrica, a wild, sandy stretch within the Rio Formosa Natural Park, has been named one of the world’s best beaches. Boat rentals to explore the coastal lagoon, also a prime birdwatching area, are available in Rio Formosa Park at Olhao. South of Vila Real, another natural area, the pine-forested Mata Nacional da Dunas Litorais, extends for miles. Only a five-minute drive away, it’s also an easy, shaded bike ride from the home. Crossing the river into Spain via ferry will land you in the village of Ayamonte, a former fortress town buzzing with shops, tapas bars, and marketplaces. 

EXPERIENCES

If you're interested in structured activities, consider workshops curated by Studio Stories, including a deep dive into biodynamic and natural wines vs. conventional pours, social media tutoring, food and tablescape styling, and holistic skincare and fitness routines.

LOCATION

Vila Real de San Antonio, Algarve, Portugal. Nearest airport: Faro (50 minutes)

BEST TIME TO VISIT: Spring to fall