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.
1-bedroom, 1-bathroom studio of 45 m², energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property offers direct access to a large leisure area with mature trees and a swimming pool, enhancing the outdoor living experience. Atmosphere: Located in a quiet, family-friendly community, ideal for both relaxation and activities.
The valuation. The asking price of €180,000 is significantly above the fair value of €140,145, representing an overvaluation of €39,855 or 22.1%. This indicates that the property is overpriced in the current market. Buy-to-flip angle. A buy-to-flip strategy may be less favorable considering the overvaluation, making it challenging to achieve a profitable resale in a potentially saturated market. Investors should assess if renovations could yield a better return. Buy-to-let angle. With a gross yield of 4.7% and expected rental income of approximately €705 per month, the property can serve as a reliable buy-and-hold investment, especially catering to seasonal tourist demand in the Algarve region.
Fair value modelled at €140,145 from the area baseline, adjusted for condition and location. Asking €180,000 sits €39,855 (22.1%) above — overpriced versus fair value.
Asking €180,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €155,250 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 (Condition 60 · Materials 65 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 70 · Amenities 80 · 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 €155,250 + condition -€9,492 + location +€13,107 = modelled fair value of €140,145 (€3,114/m²), a €39,855 (22.1%) gap versus the €180,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · b7b513 | Subject | €180,000 | €4,000 | — | 60 | 74 |
| rua da Esteva, 11 | Active | €360,000 | €3,789 | 5.3% | 65 | 61 |
| Albufeira e Olhos de Água · 09000a | Active | €160,000 | €2,807 | 29.8% | 55 | 71 |
| Albufeira e Olhos de Água · 95680a | Active | €395,000 | €3,950 | 1.2% | — | 70 |
| rua Manuel José de Paiva | Active | €375,000 | €3,000 | 25.0% | 72 | 67 |
| Median comp | €367,500 | €3,395 | 15.1% | 65 | 69 |
Short-term vacation rental The property is overpriced at €180,000 compared to a fair value of €140,145, resulting in a significant 22.1% gap. A gross yield of 4.7% may not justify the elevated price, making it a less attractive option for short-term rentals in a seasonally-dependent tourist area. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable considering its overpriced status and an estimated fair value that is considerably lower. With a condition rating of 62/100 and a lack of appreciation potential, this option may yield disappointing returns over time. Long-term rental The long-term rental market may not support this property’s overpriced asking price of €180,000, particularly given the projected fair value of €140,145. A gross yield of 4.7% does not compensate for the high initial investment, suggesting that this strategy would be fraught with challenges in pricing and revenue generation.
Economic Dependency Risk The property's economic stability score of 65/100 indicates a moderate risk, suggesting potential fluctuations in rent values and tenant retention that could impact overall profitability.
