IT WAS once reckoned to be the Fim do Mundo, the end of the world... The locals would cross themselves to ward off evil spirits, offering up a prayer for salvation. And seafarers would take extra care negotiating the coastline, just in case they happened to set sail for oblivion.

Little wonder. Angry Atlantic waves crash on rocky beaches at one side of this windswept peninsula and, in complete contrast, the Mediterranean laps gently at the sandy strips along the other.

This is wild Cabo de Sao Vicente, the most south-westerly tip of Europe and a million miles from most people's preconceptions of Portugal's usually sun-kissed Algarve.

It was here that Henry the Navigator mustered the great cartographers, astronomers and mariners of the 15th century to map the world and build caravels to sail it. His gigantic rosa dos ventos - a wind compass engraved into the rough stone - still stands at the entrance to the fort at Sagres, the fishing village and gateway to the cape.

And although Francis Drake (he's still known as the English pirate' in these parts) raided the coast in 1587 to fight the Spanish occupiers, Henry's small domed chapel survives.

Fortune, it seems, still favours the brave in the 21st century.

From the vertiginous cliff faces, anglers daily risk their lives to catch the teeming fish 75 metres below. Bracing themselves against the gusts of wind, they exploit nooks and crannies in the rock.

On the top of the windswept plateau, gypsy traders set up stalls to sell local handicrafts. Yes, knitted jumpers are in demand here - even in summer.

This is the real Algarve. To the east is a coastline filling with hotels, holiday resorts and yachting marinas. But to the north are some of Europe's surfing beaches.

However, if your taste is more for the traditional beach holiday, the Algarve is remarkably compact and you can easily combine the best of both worlds.

It's easy to miss the four-bedroomed Villa Ninho d'Aguia, one of the Algarve's hidden hideaways, where I made my base, despite it being just a ten-minute drive from the busy and often crowded commercial resort of Albufeira.

Available to British tourists through Meon Villas, the villa is a haven of tranquillity: cool marble floors, rooms washed with Mediterranean light and a pool and barbecue area imaginatively built on three levels.

But it is as night falls that the place really comes into its own with a roof terrace giving a spectacular cosmic canopy.

And a word about Albufeira. It's crowded and finding a parking space is like the quest for the Holy Grail. The new town is indistinguishable from any other modern holiday resort with its hotels, bars and crowds. Better is the Moorish old town clinging to the cliffs above the main beach.

Here, you can watch artists carving intricate sculptures from the sand and gaze at the tourist yachts or head for the Praia dos Barcos - the Fishermen's Beach - where brightly-painted fishing boats are drawn up on the sands. And a captivating whiff of fresh sardines baking on barbecues fills the air. It's also an excellent jumping off point for a visit to the historic town of Loula - one of my favourites - which sells beautiful hand-thrown pottery at very realistic prices. Its old and modern churches offer sharp contrasts, and its gypsy market attracts crowds every Sunday morning.

More upmarket, sophisticated Vilamoura, a golf resort, has grown into a sizeable town with a huge marina, chic shops, eateries, bars and watersports.

From here you can sail a schooner to a secluded beach accessible only from the sea, and then ride an inflatable into the roaring surf before a beach barbecue of fresh fish.

Other attractions in the area include Zoomarine at Guia, where you can swim with dolphins in the deep conservation tanks for around £80 a head, and Aquapark at Quarteira, which boasts vertical slides and chutes.

To recharge your batteries, go west again and wander that wild Atlantic coast. A round trip, with time to spend on the surf beaches, can easily be done in a day.

And you'll be back at your home from home in time for that crisp white wine on the terrace, and the starry, starry night above... magic.

Travel fact box

Meon Villas has properties in the Algarve and many other destinations. One week's accommodation in Ninho dâ Aguia costs from £699 (based on April and early May). For details, including flight and car hire options, visit www.meonvillas.co.uk or call 0870-901-4011.

For flights from local airports to Faro in the Algarve, check out www.thomsonfly.com or call 0870-1900-737. For information on the Algarve, click on: www.algarve.org and www.visitalgarve.pt.