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 Albufeira’s most touristy street and benefits from a well-maintained gated community with two swimming pools and private parking.
The valuation. The asking price of €270,000 is positioned significantly above the fair value of €234,612, reflecting an excess of €35,388, or 13.1%. This indicates that the property is overpriced. Buy-to-flip angle. A buy-and-flip strategy would rely on enhancing the apartment with value-add renovations to increase its appeal before reselling at a higher price for quick profit. Buy-to-let angle. The estimated monthly rental income of €945 yields a gross yield of 4.2%, making the apartment a decent option for long-term rental investment in the tourism-driven Albufeira market.
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 €166,870 (€3,034/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. Full condition report →
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. Full location report →
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €166,870 + 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.
Short-term vacation rental The property, despite its alignment with tourism-driven demand in Algarve, is overpriced at €270,000 compared to a fair value of €234,612, creating a mismatch for potential returns. With a gross yield of only 4.2%, you may struggle to achieve desired profitability against rising costs and competition. Buy-and-hold With a notable gap of 13.1% between market listing and fair value, this 1-bed apartment's current price does not justify long-term investment given the stagnant yield of 4.2%. Investors may face challenges in maintaining cash flow, making this strategy less appealing in the current market climate. Value-add renovation Considering the property’s current condition rating of 64/100, any proposed renovations may not yield adequate returns if acquired at the asking price of €270,000, which is already inflated. The necessary investment in upgrades should be weighed against its existing market value, which limits potential profit margins. Not ideal for: Student housing, Luxury market, Industrial The characteristics of the property and its location make it unsuitable for student housing, luxury market demands, or industrial use, especially given the overpriced nature of the apartment. Aligning with neighborhood trends, these segments are unlikely to perform well under current pricing pressures.
Economic Vulnerability With an economic stability score of 65/100, this property may face risks due to potential fluctuations in local job markets affecting tenant demand and rental income.
