Civil Protection workers said yesterday the seven-day blaze, which began near the village of Monchique a half-hour drive north of the coast, had been stabilised.
More than 20 firefighters were among 42 people injured and around 300 people were evacuated from their homes.
The flames came close to a house ex-PM David Cameron and his family often rent in the summer.
The neighbouring municipality of Silves has also been affected, with a number of residents being evacuated.
Caroline Leather, from Caerleon near Newport, Wales, said her daughter Emily Ross’s home was among the estimated 17 houses described as “main dwellings” said to have been destroyed in the municipality of Monchique.
She has already raised more than £5,000 via GoFundMe.
Revealing the couple’s heartache, she wrote: “Just over a year ago James and Emily, my daughter, managed to find some land in a beautiful area of Portugal near Monchique.
“They invested everything they had to acquire the land and subsequently worked tirelessly to clear and rebuild the house and land.
“Their skills plus sheer determination and hard work enabled them to create a beautiful haven in harmony with nature.
“Their ultimate dream was to become self sufficient and provide a retreat for people to experience tranquility and discover new possibilities within their lives.
“In the last few days the wild fires around Monchique have literally wiped out and destroyed everything. The land is black. The beautiful trees have gone.
“The house they had very recently completed is obliterated. It is impossible to imagine how it must feel to see your dreams shattered.
“To be left quite simply with just what you are wearing that day.
“They are amazing people, strong, honest, inspiring, always preferring to see the good in people and in bleak situations in life.
“I am so thankful that Emily and James were not taken by the fire as well. I will do everything and anything I can to help them.”
The Monchique wildfire broke out in a eucalyptus forest in an area called Perna da Negra in the wake of a heatwave which saw temperatures soar to 46C (114.8 degrees Fahrenheit) in some parts of the country.
Emily, who was one of the Brits evacuated, told well-wishers on social media earlier this week: “Thank you for all your messages of love and support. It really means a lot right now.
“I can’t reply to you all individually yet, we need time to process.
“We’ve been back to our land this morning. Our little house we recently finished renovating is complete destroyed, everything we own has gone.
“The land is unrecognisable, bare and black. It’s horrific and still doesn’t seem real. We worked so hard this past year putting all our love and everything we earned into this project we’ve been dreaming of since we met.
“The only standing room had all of James’ carpentry machine’s in which is a God send. Thinking of all our friends here.
“I’m praying no-one else has been this badly effected. And praying they stop this fire that has caused so much damage to our beautiful mountain range.”
She said of the evacuation: “It was a real rush, with animals.
“Cat’s so scared he pissed and c####ed in my lap. Five hundred-plus firemen, hundreds of trucks, eight helicopters. Praying they get on top of it.”