The disappearance of Madeleine McCann, a four-year-old British girl, from a holiday apartment in Praia da Luz earlier this year has turned the formerly sleepy resort town into one of the most famous (some argue notorious) places in Portugal.

Located in the western Algarve about 6km from Lagos, a former capital of the region, Praia da Luz was until the 1960s a small fishing village, comprising a handful of huts and cottages. Holidaymakers – mainly from Portugal and the UK – eventually discovered it and have over the past few decades influenced construction styles, culture and tradition, replacing the older dwellings with more modern, semi-detached townhouses facing south to sea and ensuring that Luz Bay is filled with paddleboats and sailboats rather than working vessels.

A handful of restaurants, specialising grilled fish, are scattered along the beachfront, while the centre is marked by the Nossa Senhora da Luz church, restored following a 1755 earthquake and one of few signs that the village is much older than the new buildings rising in and around it.

Still, in stark contrast to other parts of the Algarve, growth in Praia da Luz has been orderly and considered, with most new developments, such as Almaverde and Parque da Floresta, blending into the natural surroundings. At the former, only 10 per cent of the land has been used for building with the rest devoted to gardens, paths and parks, while the latter will be 91 per cent open space, with 167,000 trees planted over the past 15 years, wind turbines to provide power and on-site recycling points for plastic, glass and paper.

Even now, the registered population of full-time inhabitants in the town is only 3,000 – although that figure is boosted significantly by semi-permanent residents, including low-key British celebrities such as former Premier League footballers David Seaman of Arsenal and John Aldridge of Liverpool, snooker star Steve Davis and Sky News weather presenter Jo Wheeler.

Needless to say, the media frenzy surrounding the McCann case, which started in May and carried on through the summer, was an unwelcome change for the typically tranquil town, as well as Lagos and the nearby villages of Burgau and Espiche. But, according to local estate agents, the added crowds and negative publicity have not cast a shadow over the area’s residential property market.

“People who buy [in Praia da Luz] do so because they have been there many times before, know the area and love it,” says Nick Sadler, director of Sadlers Property, a Lagos-based estate agency associated with Knight Frank. “[It] has a beautiful, clean, safe beach, a child-friendly atmosphere and is less than an hour from the airport. The local Portuguese all speak English and are very welcoming. What happened in May does not affect that.”

His agents continued to show properties even when the village was bursting with satellite trucks and journalists and none found that potential buyers were put off by the commotion or heightened concerns about safety and security. “We had a few people postpone trips out at the time but their response was that they would continue looking when things calmed down,” he says.

Today, homes in and around Praia da Luz are selling with as much frequency as before the disappearance. Prices – which range from €200,000-€450,000 ($283,000-$637,000) for an apartment to €500,000-€2m for a villa depending on size and views – are still rising. And “we have agreed a sale there this month at the top end of the market so we are not worried”, Sadler says.

Graham Foster, a director at Luz Select Real Estate, is equally bullish. “Sales continued at a normal pace in May, as people had already arranged property deals. There was a dip in June but it did not last long and it is now business as usual.”

Some clients, most of whom are from the UK and northern Europe, did initially seek assurance that the McCann case was an isolated incident, says Foster, who was in May staying with his own young children at an apartment only yards from where Madeleine disappeared. “But most of our customers have been visiting Praia da Luz for many years” and none have decided to abandon their dream of buying a home in the village, he adds.

One other sign that families are still relocating to the town is the robust enrolment at the two international schools in the western Algarve. The Barlavento School, located just outside Praia da Luz, is filled to capacity and has a waiting list while the Vale Verde International School in Burgau, 5km from the McCanns’ holiday apartment, has accepted 32 new pupils this year. Judy Robinson, head teacher at Barlavento, says the only negative effect the case might have on her school is if the tourist trade declines and parents, many of whom work in hospitality, find it more difficult to pay their tuition fees.

Although the property market remains buoyant, developers have been advertising heavily and, where applicable, emphasising how protected they are from crime. “As we have a number of high-profile owners, Parque da Floresta has long had 24-hour security for the resort,” says Ewa Petterson, sales director at the community, which is just west of Praia da Luz. “While the western Algarve is generally a safe destination, our system provides additional peace of mind for residents, [and] we have not noticed any decline in interest from potential buyers, many of whom are families buying a second home in an unspoilt location, within beach and golf resorts, all with family-friendly facilities.”

Petty crime does happen but police say the theft of personal belongings from holiday apartments and cars is usually a result of negligent or care-free owners and renters leaving valuable items in view of passers-by and failing to lock them away.

Some locals think that the Madeleine saga might even help attract more buyers to Praia da Luz over the long term. “I think the images seen on television showed [the town] in a positive light,” says Luísa João, a member of the parish council. She lives and works in the heart of the village, often visiting her grandchildren in Lagos, and thinks it is one of the safest places in Portugal to have a home or holiday. “In one or two years, people will have forgotten about the case,” she says. “Already everything is back to normal.”

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Local agents

Parque da Floresta, tel: +351 282-690 www.vigiagroup.com
Luz Select, tel: +351 282-790-970 www.luzselect.com
Sadlers, tel: +351 282-789-336 www.knightfrank.com