About Us

THE STORY OF THE ESTATE

According to an elderly neighbour from the hamlet, the story of Penedo do Bufo began one distant evening during a card game. The owner of a vast estate spanning several dozen hectares is said to have lost everything after wagering more than he actually possessed. The winner, a man named José, decided to build his home on the land – the house now known as Casa da Terra – and settled there with his family from Almodôvar, in the neighbouring region of Alentejo, on the other side of the mountains.

As José’s only heir, José Junior (the man standing on the far right in the photograph), never had children, the house eventually passed to cousins. Over time, they gradually expanded the building so that the entire family could live there. The main extension corresponds to what is today Casa da Água. The kitchen and staff quarters were located in what is now the technical wing on the street side, while the former stables were transformed into the dormitory now called Floresta.

The exterior walls of the main façade were decorated with stucco imitating marble (“escaiola” in Portuguese), while the interior walls were embellished with colourful frescoes that brought warmth and character to the house.

José Junior (on the far right), the former owner of Penedo do Bufo.

Aerial view of the property before restoration.

During the second half of the twentieth century, the house was gradually abandoned as its inhabitants left the mountains as part of the rural exodus, seeking new opportunities in Loulé or along the coast, as tourism expanded across the Algarve. Penedo do Bufo slowly deteriorated and remained unoccupied for more than forty-five years.

When we purchased the property in 2019, nature had almost completely reclaimed it. Parts of the roof and walls had collapsed, allowing vegetation to grow inside the house. Over the years everything had been removed – doors, windows, fireplaces – leaving only the original hydraulic floor tiles, which had miraculously survived. These tiles were carefully removed, restored and reused throughout the house in the bathrooms, kitchens and garden areas.

Stone inscription bearing the initials of one branch of the family and the date of one of the house’s extensions.
Reclaiming the original floor tiles.

The first time we entered the house, machetes in hand to clear our path, we discovered around a dozen anti-establishment graffiti messages scattered across the walls.These traces tell the story of one or two decades during which young people – residents of a nearby reform institution – occasionally occupied the abandoned building, using it for various activities, artistic or otherwise.

One of the many graffiti pieces found in the abandoned house.

Today, the house has been given a new life, and we are delighted to share with you part of its story – a story of chance, inheritance, abandonment and ultimately rebirth in the heart of the Algarve countryside.

THE ORIGIN OF THE NAME

The name Penedo do Bufo, which literally translates as “Rock of the Owl”, most likely refers to the Eurasian eagle-owl, the largest nocturnal bird of prey in Europe (scientific name Bubo bubo, also known in Portuguese as bufo-real). In the past, this majestic bird is believed to have watched over the valley from the highest rock on the property, located behind the house. This rock faces Rocha da Pena, a protected limestone plateau whose cliffs rise to 479 metres, where these impressive owls still live today.

Another version of the story, slightly less poetic but equally colourful, suggests that Senhor José used this very rock to keep an eye on the agricultural workers labouring in the fields below, ready to scold them if he felt they were not working hard enough. Indeed, in Portuguese slang, “bufo” can also mean informant or snitch. Between the image of a majestic owl and that of a watchful landowner, the mystery remains – but the name has endured among the locals and is now an integral part of the history of the estate.

The Eurasian Eagle-Owl (Bubo bubo), one of Europe’s largest owl species.

PHILOSOPHY & MISSION

“To be at rest is to be natural,

like the grass that grows without thinking.”

Alberto Caeiro

Penedo do Bufo is a special place that we first took time to understand and connect with before restoring it and opening it to share with our guests.

With deep respect for the generous nature that surrounds us and for the local community that welcomes us, we open our doors to you.

The estate is equally well suited to family reunions, holidays with friends, and moments of renewal – whether for a retreat, a workshop, or a corporate offsite.

Our mission is simple: to welcome you in a way that allows you to feel at home, safe, and deeply connected with the calm and natural beauty of the Algarve countryside.

We also take great pleasure in sharing our love of the region and offering recommendations for walks, activities and discoveries tailored to your interests.

Plus de détails dans la section Membres avec des informations pratiques, des liens vers les sites utiles, nos coups de coeur et nos recommandations

The Penedo do Bufo Estate

Your home in the Algarve hills, where time slows down.

Nestled in the heart of the Algarve’s lush rolling hills, the Penedo do Bufo Estate welcomes up to 22 guests across two houses, seven bedrooms, and a welcoming dormitory.

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