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 98 m², built in 1988. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Features: This apartment boasts a private patio and exclusive access to a well-maintained condominium pool, offering a vibrant outdoor living experience in a tourist-friendly area.
The valuation. The asking price of €265,000 is positioned slightly below the fair value of €278,080, indicating an underpriced opportunity by €13,080 (4.9%). This suggests potential upside for savvy investors. Buy-to-flip angle. A strategic buy-to-flip approach could capitalize on the property’s average condition, allowing for renovations and updates to enhance value before resale, potentially yielding a profit margin. Buy-to-let angle. The rental income strategy appears lucrative, with an estimated gross yield of 4.8%, translating to approximately €1,060 per month. This positions the property favorably for generating steady cash flow through long-term leasing.
Fair value modelled at €278,080 from the area baseline, adjusted for condition and location. Asking €265,000 sits €13,080 (4.9%) below — the upside to fair value.
Asking €265,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €297,332 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 50/100 (Condition 48 · Materials 55 · Room dimensions 54). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 66/100 (Housing Market 75 · Amenities 60 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €297,332 + condition -€38,281 + location +€19,029 = modelled fair value of €278,080 (€2,838/m²), a €13,080 (4.9%) gap versus the €265,000 asking price.
Short-term vacation rental The property is well-positioned for short-term vacation rentals given its strong appeal in the tourist-driven Algarve region, with a fair value that confirms its attractiveness as a profitable investment. At a gross yield of 4.8%, this 2-bed apartment offers an opportunity to capitalize on the high demand for vacation accommodations. Buy-and-hold With a fair value of €278,080 indicating a 4.9% upside, this apartment holds promise for long-term appreciation in a neighborhood that benefits from steady tourism growth. The relatively low condition score of 50/100 presents potential for value-add renovations that could enhance its market position over time. Long-term rental The apartment’s gross yield of 4.8% makes it an appealing option for long-term rental in a neighborhood rated 66/100, providing a stable income stream fueled by the consistent demand from local residents and seasonal workers. However, it may not reach the high-demand levels seen with short-term rentals, impacting long-term ROI slightly. Not ideal for This property is not suitable for student housing due to its location not being near educational institutions, nor is it aligned with the luxury market expectations. Additionally, as a residential unit rather than a commercial space, it does not present the characteristics needed for industrial investments.
Economic Vulnerability The economic stability score of 65/100 indicates potential vulnerability to market fluctuations which could impact rental income stability.
