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.
0-bedroom, 1-bathroom studio of 48 m², built in 1993, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The studio boasts a luxury finish with high-quality materials and a meticulously designed layout that optimizes space while offering a breathtaking unobstructed 180° sea view.
The valuation. The asking price of €295,000 sits significantly above fair value, which is estimated at €163,415, thus overpricing the property by €131,585 (44.6%). Buy-to-flip angle. Given the market condition, a resale strategy focusing on renovations could aim for a quick flip, targeting buyers valuing high-quality appliances and stylish finishes. Buy-to-let angle. With an estimated gross yield of 3.6%, generating approximately €885/month, the rental income potential is decent for a short-term vacation rental in a tourist-heavy location like Albufeira.
Fair value modelled at €163,415 from the area baseline, adjusted for condition and location. Asking €295,000 sits €131,585 (44.6%) above — overpriced versus fair value.
Asking €295,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €165,600 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 76 · Materials 85 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €165,600 + condition +€5,550 + location +€12,233 = modelled fair value of €163,415 (€3,404/m²), a €131,585 (44.6%) gap versus the €295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 99f3a2 | Subject | €295,000 | €6,146 | — | 76 | 71 |
| Albufeira e Olhos de Água · 49b926 | Active | €420,000 | €6,364 | 3.5% | 76 | 72 |
| Albufeira e Olhos de Água · 9567b4 | Active | €350,000 | €4,667 | 24.1% | 80 | 76 |
| rua das Alfarrobeiras, 158 | Active | €385,000 | €4,936 | 19.7% | 75 | 66 |
| rua dos Ibíscos | Active | €390,000 | €4,875 | 20.7% | 80 | 73 |
| Median comp | €387,500 | €4,906 | 20.2% | 78 | 73 |
Short-term vacation rental Given the property’s listing price of €295,000—significantly above its fair value of €163,415—it is not an ideal investment for a short-term vacation rental strategy. The yield of 3.6% gross is unappealing in the context of market expectations, especially in a tourism-driven region like Albufeira. Buy-and-hold This property, with a fair value gap of 44.6%, suggests it is overpriced for a buy-and-hold strategy, potentially impacting long-term returns. The current economic dependence on seasonal tourism raises concerns about stability and growth in the property’s value over time. Family rental As a family rental, the property’s pricing at €295,000 does not align with the fair value of €163,415, indicating it is overpriced for this market segment. Furthermore, the neighborhood's quality score of 71/100 suggests limitations that could deter families seeking stable long-term rentals.
Economic and Tenant Instability Risk: With both the economic stability and tenant stability scores at 65/100, there is a notable risk of fluctuating occupancy rates and unreliable rental income due to potential economic downturns.
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