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, 2-bathroom apartment of 67 m², built in 2000, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features an expansive terrace ideal for outdoor entertaining, and its proximity to local amenities enhances its appeal for lifestyle-oriented buyers.
The valuation. The asking price of €325,000 is significantly above the fair value of €215,852, indicating a discrepancy of €109,148 (33.6%). This property is overpriced based on current market conditions.
Fair value modelled at €215,852 from the area baseline, adjusted for condition and location. Asking €325,000 sits €109,148 (33.6%) above — overpriced versus fair value.
Asking €325,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €231,150 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 (Condition 72 · Materials 75 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €231,150 + condition -€4,502 + location +€17,075 = modelled fair value of €215,852 (€3,222/m²), a €109,148 (33.6%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · dbd4b3 | Subject | €325,000 | €4,851 | — | 72 | 71 |
| rua do Pinhal | Active | €295,000 | €4,097 | 15.5% | 70 | 71 |
| Albufeira e Olhos de Água · 03254d | Active | €450,000 | €3,913 | 19.3% | 70 | 72 |
| praceta Pinhal, 37 | Active | €620,000 | €4,806 | 0.9% | 75 | 80 |
| rua da Esteva, 11 | Active | €360,000 | €3,789 | 21.9% | 65 | 61 |
| Median comp | €405,000 | €4,005 | 17.4% | 70 | 72 |
Short-term vacation rental While the coastal location of Albufeira e Olhos de Água enhances short-term rental demand, the property is overpriced at €325,000 compared to the fair value of €215,852, creating a significant yield challenge. With a gross yield of only 3.8%, this investment lacks the potential for attractive returns in the competitive vacation rental market. Buy-and-hold The long-term appreciation potential of the property is hindered by its current listing price of €325,000, which exceeds the fair value of €215,852, suggesting limited upside for future resale or rental income. A gross yield of 3.8% indicates that the property does not align with the financial performance expectations of a solid buy-and-hold strategy. Value-add renovation Investing in value-add renovations can improve the property's condition score of 71, yet at a purchase price of €325,000, it remains overpriced relative to the fair value of €215,852. The inherent risk of overcapitalization means that the returns on such improvements may not compensate for the initial excessive investment in this already overpriced property.
Economic and Tenant Risk With both economic stability and tenant stability scores at 65/100, there's a risk of volatility in rental income due to potential fluctuations in the local economy and tenant turnover rates.
