This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
0-bedroom, 1-bathroom studio of 41 m², built in 2007, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Investment Potential: This studio is set within a tourist development, enhancing its appeal for short-term rental opportunities, just steps from Forte de São João beach.
The valuation. The asking price of €185,000 exceeds the fair value of €133,113 by €51,887, or 28.0%, indicating that the property is overpriced. Buy-to-flip angle. A buy-to-flip strategy may face challenges due to the current overpricing, making it essential to negotiate down from the asking price for profitability. Buy-to-let angle. With an estimated rental income of €740/month, the gross yield stands at 4.8%, which supports a buy-to-let strategy, especially in a tourist-driven economy.
Fair value modelled at €133,113 from the area baseline, adjusted for condition and location. Asking €185,000 sits €51,887 (28.0%) above — overpriced versus fair value.
Asking €185,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €124,394 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 74). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €124,394 + condition -€1,730 + location +€10,449 = modelled fair value of €133,113 (€3,247/m²), a €51,887 (28.0%) gap versus the €185,000 asking price.
Short-term vacation rental Despite the strong tourist influence in the Algarve region, this studio is currently overpriced compared to its fair value, presenting a significant gap of 28.0%. With a gross yield of 4.8% and a condition score of only 72/100, the property may struggle to attract competitive rental rates in the short-term vacation market. Long-term rental The overpriced nature of this 0-bed studio, with a fair value of €133,113, limits its potential for a substantial return in the long-term rental market. The neighborhood's overall rating of 71/100 indicates a decent living environment, but the 4.8% gross yield does not justify the elevated price point. Buy-and-hold With the property priced at €185,000, it stands 28.0% above its fair value, suggesting inadequate prospects for future appreciation in a buy-and-hold strategy. The underlying economic drivers are tilted heavily towards tourism, but the property's condition and yield do not support a strong investment thesis for long-term holding.
Potential Economic Downturn The economic stability score of 65/100 indicates a moderate level of economic vulnerability that could impact tenant retention and rental income stability.
