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 107 m², built in 1998, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy features: The apartment boasts direct access to a balcony with stunning sea views and is located just 500 meters from Fishermen's Beach, enhancing its appeal for coastal living.
The valuation. The asking price of €465,000 significantly exceeds the fair value of €357,297, indicating the property is overpriced by €107,703, or 23.2%. This discrepancy raises concerns regarding potential return on investment.
Fair value modelled at €357,297 from the area baseline, adjusted for condition and location. Asking €465,000 sits €107,703 (23.2%) above — overpriced versus fair value.
Asking €465,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €369,150 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 80 · Materials 78 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €369,150 + condition +€6,688 + location +€25,971 = modelled fair value of €357,297 (€3,339/m²), a €107,703 (23.2%) gap versus the €465,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 38911b | Subject | €465,000 | €4,346 | — | 80 | 70 |
| Albufeira e Olhos de Água · 82c66e | Active | €345,000 | €4,157 | 4.4% | 85 | 79 |
| estrada de Vale de Pedras, 101 | Active | €365,000 | €2,992 | 31.2% | 72 | 71 |
| Albufeira e Olhos de Água · 4a7d65 | Active | €260,000 | €4,727 | 8.8% | 72 | 75 |
| rua dos Bares | Active | €275,000 | €4,167 | 4.1% | 74 | 73 |
| Median comp | €310,000 | €4,162 | 4.2% | 73 | 74 |
Long-term rental The property is overpriced at €465,000, against a fair value of €357,297, indicating a significant gap that diminishes the potential for capital appreciation. With a gross yield of 3.5%, the long-term rental return does not justify the elevated entry price in this tourist-dominated market. Short-term vacation rental While the property is situated in a prime tourist region of Algarve, it is overpriced at €465,000, which exceeds the fair value of €357,297 by 23.2%. The demand for short-term vacation rentals may support occupancy, but the high purchase price undermines the potential for attractive returns. Buy-and-hold Investing in this property as a long-term buy-and-hold strategy is challenged by its overpriced listing of €465,000 compared to a fair value of €357,297. The limited yield of 3.5% further complicates the investment case, making it less favorable in the current pricing context.
Economic Volatility Risk The economic stability score of 65/100 indicates a medium level of volatility which may lead to fluctuating rental income and impact tenant retention.
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