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, 3-bathroom apartment of 175 m², energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property features a cozy fireplace in the living room and a private terrace with a grill, perfect for outdoor dining and social gatherings.
The valuation. The asking price of €475,000 is significantly below the fair value of €589,158, presenting an attractive opportunity at €114,158 (24.0%) underpriced. This positions the property as a financially sound investment for future growth. Buy-to-flip angle. With a prudent renovation plan and marketing strategy, the property can be resold at a premium, targeting buyers seeking high-quality vacation homes in the Algarve. A modest investment in updates could elevate its market appeal further. Buy-to-let angle. The rental income strategy forecasts a gross yield of 3.5%, with an estimated monthly income of €1,385. Given the strong tourism market in the Algarve, this could provide a steady cash flow for long-term investors.
Fair value modelled at €589,158 from the area baseline, adjusted for condition and location. Asking €475,000 sits €114,158 (24.0%) below — the upside to fair value.
Asking €475,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €530,950 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €530,950 + condition +€11,484 + location +€46,724 = modelled fair value of €589,158 (€3,367/m²), a €114,158 (24.0%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 99f1b3 | Subject | €475,000 | €2,714 | — | 75 | 72 |
| rua do Município | Active | €540,000 | €2,687 | 1.0% | 80 | 70 |
| Albufeira e Olhos de Água · 001855 | Active | €655,000 | €3,722 | 37.1% | 78 | 65 |
| rua do Município S / N N1 | Active | €540,000 | €2,432 | 10.4% | 82 | 73 |
| largo das Ilhas | Active | €549,000 | €4,037 | 48.7% | 74 | 76 |
| Median comp | €544,500 | €3,205 | 18.1% | 79 | 72 |
Short-term vacation rental The property is strategically positioned in the Algarve, an area celebrated for its tourism appeal, allowing for strong demand in the short-term rental market. With a fair value of €589,158 and a listing price of €475,000, it represents a significant opportunity, being 24% below fair value. Buy-and-hold Given the 3.5% gross yield and the strong fundamentals of the Albufeira market, this property stands as a solid investment for long-term appreciation. Its fair value significantly surpasses the current listing, indicating a favorable position for sustained growth in the future.
Economic Fluctuation Risk The economic stability score of 70 indicates potential volatility in the local economy, which may impact tenant demand and lead to higher vacancy rates.
