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, 1-bathroom apartment of 89 m², built in 2009, energy rating C. Located on rua das Telecomunicações, 25, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features a spacious balcony ideal for morning breakfasts, and is located within walking distance to Albufeira's vibrant central beaches and local amenities.
The valuation. The asking price of €275,000 sits significantly below the fair value of €386,091, indicating the property is underpriced by €111,091 (40.4%). This discrepancy presents an attractive opportunity for potential investors.
Fair value modelled at €287,016 from the area baseline, adjusted for condition and location. Asking €275,000 sits €12,016 (4.4%) below — the upside to fair value.
Asking €275,000 versus the rua das Telecomunicações, 25 area baseline of €270,026 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 75 · Room dimensions 64). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
rua das Telecomunicações, 25
Area baseline €270,026 + condition -€10,013 + location +€27,003 = modelled fair value of €287,016 (€3,225/m²), a €12,016 (4.4%) gap versus the €275,000 asking price.
Short-term vacation rental The property in Albufeira e Olhos de Água is well-positioned for short-term vacation rentals due to its proximity to the coast and the high demand in the Algarve tourist region. With a fair value significantly higher than the listing price, the potential for strong rental income and occupancy rates aligns well with a strategic investment in vacation rentals. Buy-and-hold This apartment presents an attractive opportunity for a buy-and-hold strategy, given its favorable gap to fair value of 40.4% and a decent gross yield of 4.7%. The neighborhood’s amenities and tourist appeal enhance the potential for long-term price appreciation and consistent rental income. Long-term rental Investing in long-term rentals in this area can be a lucrative option due to the solid tenant quality and attractive neighborhood scoring 75/100. The combination of a robust rental yield and a significant margin to market value suggests that this property could generate stable cash flow over time. Not ideal for student housing This property is not well-suited for student housing, considering the overall demand profile of the area and the apartment size. The neighborhood dynamics and tenant quality further suggest that investors would face challenges with this specific strategy. Not ideal for luxury market Given the current condition rating of 68/100, this property does not align well with the luxury market segment. The appeal factors that support vacation and long-term rentals do not translate effectively to high-end luxury expectations.
Economic downturn risk The economic stability score of 70/100 indicates a moderate risk of economic downturns which could negatively impact rental income or property value.
