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Smaller, but not unlike Carvoeiro is pretty fishing village Ferragudo further along the Algarve coast towards Portimao. There's a choice of some devine luxury Algarve accommodation here, particularly villa rentals.
Ferragudo is indeed a peaceful Algarve retreat with a stunning sandy quiet sheltered beach, character cobbled streets, friendly laidback bars and restaurants, a lazy central square, and old 17th century fort right on the water's edge. Ferragudo is particularly famous for its seafood and fish restaurants.
Choose Ferragudo as a quiet base, with easy access into Portimao with its superb choice of shops, best Algarve beach Praia da Rocha and marina.
Algarve car hire is recommended here to push upto historic Silves and Silves castle, and even further up into the Algarve west interior for walking around natural spa hotspot Caldas de Monchique.