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.
2-bedroom, 2-bathroom apartment of 176 m², built in 2025, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This penthouse features a private rooftop terrace with a jacuzzi and direct access to a landscaped garden, providing an exceptional outdoor living experience enhanced by stunning views.
The valuation. The asking price of €655,000 is €75,227 above the fair value of €579,773, indicating the property is overpriced by 11.5%. This premium significantly reduces its appeal as a sound investment option.
Fair value modelled at €579,773 from the area baseline, adjusted for condition and location. Asking €655,000 sits €75,227 (11.5%) above — overpriced versus fair value.
Asking €655,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €607,200 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 75 · Amenities 65 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €607,200 + condition +€13,750 + location +€32,039 = modelled fair value of €579,773 (€3,294/m²), a €75,227 (11.5%) gap versus the €655,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 001855 | Subject | €655,000 | €3,722 | — | 78 | 65 |
| rua do Município S / N N1 | Active | €540,000 | €2,432 | 34.6% | 82 | 73 |
| largo das Ilhas | Active | €549,000 | €4,037 | 8.5% | 74 | 76 |
| Albufeira e Olhos de Água · 99f1b3 | Active | €475,000 | €2,714 | 27.1% | 75 | 72 |
| rua do Município | Active | €540,000 | €2,687 | 27.8% | 80 | 70 |
| Median comp | €540,000 | €2,701 | 27.4% | 78 | 73 |
Short-term vacation rental The property is facing an overpriced valuation with a fair value of €579,773, creating an 11.5% gap compared to the listing price of €655,000. Given the yield is currently at 0%, it may not deliver the expected returns typical for short-term vacation rentals in a prime tourist destination like Albufeira. Buy-and-hold As prices exceed fair market value, this property at €655,000 is less attractive for a buy-and-hold strategy, particularly with an overall condition rating of 80/100 and a neighbourhood score of 65/100. Investors should weigh the long-term holding costs against the anticipated appreciation in a saturated market. Value-add renovation Considering the property is overpriced, investing in renovations may not yield the desired increase in property value, especially if current market conditions limit profitability. The 80/100 condition rating indicates some potential for improvement; however, the costs may outweigh any benefits stemming from a 11.5% initial markup over fair value.
Economic and Tenant Risk The property faces a significant risk due to its moderate economic stability score of 60 and tenant stability score of 60, indicating potential volatility in rental income and tenant retention.
