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 52 m², built in 2003, energy rating C. Located on rua do Município, 31, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment includes a stunning sea view from the 5th floor and is situated within the upscale Paraíso de Albufeira resort, enhancing its investment potential.
The valuation. The asking price of €190,000 sits €29,136 (15.3%) above the fair value of €160,864, indicating the property is overpriced. A careful assessment suggests a reconsideration of the investment based on more realistic market expectations.
Fair value modelled at €160,864 from the area baseline, adjusted for condition and location. Asking €190,000 sits €29,136 (15.3%) above — overpriced versus fair value.
Asking €190,000 versus the rua do Município, 31 area baseline of €179,400 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 (Condition 65 · Materials 60 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Município, 31
Area baseline €179,400 + condition -€10,156 + location +€13,253 = modelled fair value of €160,864 (€3,094/m²), a €29,136 (15.3%) gap versus the €190,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Município, 31 | Subject | €190,000 | €3,654 | — | 65 | 71 |
| rua do Município | Active | €210,000 | €3,818 | 4.5% | — | 71 |
| rua do Município | Active | €150,000 | €2,206 | 39.6% | 60 | 73 |
| Albufeira e Olhos de Água · 96c71d | Active | €195,000 | €3,362 | 8.0% | 62 | 72 |
| Albufeira e Olhos de Água · 6f422a | Active | €255,000 | €3,312 | 9.4% | 65 | 70 |
| Median comp | €202,500 | €3,337 | 8.7% | 62 | 72 |
Short-term vacation rental\nThe property, priced at €190,000, represents a 15.3% premium above its fair value of €160,864, indicating that it may not yield the expected returns for short-term rentals. With a gross yield of 5.6%, the investment becomes less attractive given its overpriced status and the seasonal fluctuation in tourist demand in the Algarve.\n\nBuy-and-hold\nAt €190,000, the property is priced excessively compared to its fair value of €160,864, which raises concerns about long-term capital appreciation. The 5.6% yield is decent; however, the current overvaluation diminishes the potential benefits of a buy-and-hold strategy in a fluctuating market.\n\nFamily rental\nThis 1-bed apartment, listed at €190,000, is overpriced relative to its fair value of €160,864, impacting its appeal for family rentals. The 63/100 condition rating and 71/100 neighborhood score may offer decent living standards, yet the premium price could deter potential long-term tenants seeking affordability.
Economic Vulnerability With an economic stability score of 65/100, there is a risk that economic downturns could lead to higher vacancy rates or reduced rental income.
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