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 83 m², built in 1989, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment boasts a well-designed 10m² storage corridor, enhancing functionality and organization in a stylish living space, complemented by two private balconies for outdoor enjoyment.
The valuation. The asking price of €345,000 is significantly above the fair value of €291,408, marking an overvaluation of €53,592 (15.5%). This discrepancy indicates that buyers may find better options elsewhere. Buy-to-flip angle. With strategic renovations focused on enhancing luxury features, the property could appeal to a broader market, providing potential for a lucrative resale. Aiming for a targeted resale price would be essential for maximizing returns. Buy-to-let angle. This apartment, estimated to generate a gross rental income of approximately €978/month, offers a gross yield of 3.4%. Its proximity to the Algarve coast makes it attractive for short-term vacation rentals, capitalizing on seasonal tourist demand.
Fair value modelled at €291,408 from the area baseline, adjusted for condition and location. Asking €345,000 sits €53,592 (15.5%) above — overpriced versus fair value.
Asking €345,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €286,350 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 85 · Materials 88 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 79/100 (Housing Market 85 · Amenities 80 · Economic 70 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €286,350 + condition +€10,375 + location +€29,211 = modelled fair value of €291,408 (€3,511/m²), a €53,592 (15.5%) gap versus the €345,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 82c66e | Subject | €345,000 | €4,157 | — | 85 | 79 |
| Albufeira e Olhos de Água · 38911b | Active | €465,000 | €4,346 | 4.6% | 80 | 70 |
| rua das Telecomunicações, 25 | Active | €465,000 | €4,346 | 4.6% | 76 | 73 |
| rua Vitorino Nemésio, 128 | Active | €239,000 | €4,780 | 15.0% | 75 | 73 |
| rua Marina de Albufeira S / N | Active | €450,000 | €4,545 | 9.4% | 68 | 73 |
| Median comp | €457,500 | €4,446 | 6.9% | 76 | 73 |
Short-term vacation rental The property is overpriced by 15.5%, which limits the potential for profitable short-term vacation rental returns despite the desirable location near the Algarve coast. Given the current yield of 3.4%, the investment may struggle to compete effectively in this highly seasonal rental market. Buy-and-hold At a listing price of €345,000, this property falls significantly above its fair value of €291,408, making it a less attractive opportunity for buy-and-hold investors considering future appreciation. With a neighbourhood quality score of 79/100 and steady tourism-driven demand, potential returns may be dulled by the higher purchase price. Luxury market Entering the luxury market with this property priced at €345,000 may be challenging due to its 15.5% gap to fair value, suggesting a lack of inherent luxury appeal justified by the cost. The property’s good condition score of 86/100 can only partially compensate for the premium attached, which may deter discerning luxury buyers looking for value in their investments.
Economic Downturn Risk The economic stability score of 70/100 indicates a moderate risk of economic downturns that could affect overall property demand and rental income.
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