The village is situated on the slopes of Kőszeg Mountains, at the westernmost tip of the county and the region known as Alpokalja (Lower Alps).

Owing to the excellent climatic conditions, Velem has become a well-known resort and holiday centre with full infrastructure.

At the end of World War II the Szálasi Government was based in a prominent Velem mansion called the Stirling Villa.

Preserving traditions is an organic part of this village where wooden barns stand among houses mainly built of stone and vernacular wine presses with cellars dotted along the Pákó Stream (Pákó-patak).

Due to the copper and antimony found nearby, a metal processing and metalworking centre of outstanding importance was formed besides the fortification.