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 apartment of 55 m², built in 1992, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment boasts a vibrant balcony overlooking a bustling street, ideal for unwinding after a day at the nearby beach, complemented by two swimming pools in the community.
The valuation. The asking price of €270,000 sits significantly above the fair value of €173,608, representing an overpricing of €96,392 (35.7%). This valuation suggests that potential buyers may need to negotiate down to align with market expectations.
Fair value modelled at €173,608 from the area baseline, adjusted for condition and location. Asking €270,000 sits €96,392 (35.7%) above — overpriced versus fair value.
Asking €270,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €189,750 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 64/100 (Condition 68 · Materials 60 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 75 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €189,750 + condition -€9,281 + location +€16,020 = modelled fair value of €173,608 (€3,157/m²), a €96,392 (35.7%) gap versus the €270,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 001626 | Subject | €270,000 | €4,909 | — | 68 | 74 |
| Albufeira e Olhos de Água · 99f39d | Active | €318,000 | €4,077 | 17.0% | 70 | 71 |
| avenida Sá Carneiro, 19 | Active | €269,000 | €4,559 | 7.1% | 65 | 65 |
| rua do Atlântico, 33A | Active | €285,000 | €4,524 | 7.8% | 68 | 73 |
| avenida Francisco Sá Carneiro, 5 | Active | €270,000 | €5,192 | 5.8% | — | 71 |
| Median comp | €277,500 | €4,542 | 7.5% | 68 | 71 |
Short-term vacation rental The current listing price of €270,000 represents a 35.7% gap compared to the fair value of €173,608, indicating that the property is overpriced for a short-term vacation rental strategy. While the area benefits from Algarve's tourism appeal, the gross yield of 4.2% does not justify the current market price. Buy-and-hold This property is trading at a significant premium, with a fair value of €173,608 compared to the asking price of €270,000, leading to a verdict of overpriced. The gross yield of 4.2% does not provide adequate return prospects for a buy-and-hold investment strategy in the context of the local economic stability influenced by seasonal tourism. Value-add renovation The substantial gap of 35.7% between the listing price of €270,000 and the fair value of €173,608 makes this property overpriced, limiting its attractiveness for a value-add renovation strategy. Although improving the property could enhance its value, the substantial initial cost undermines the potential return on investment given the existing economic conditions. Not ideal for This property is not suitable for student housing or the luxury market, reflecting the challenges of achieving a positive return in those sectors amidst a pricing discrepancy. Furthermore, as an industrial space, it does not meet the necessary demands of the local market and may incur further losses.
Economic vulnerability The property has a moderate economic stability score of 65/100, suggesting potential exposure to economic downturns that could affect tenant demand and rental income.
