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 112 m², built in 1990. Located on rua de Dunfermline, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Terrace Space: This apartment boasts a large West-facing terrace that offers picturesque views of the garden and pool area, enhancing outdoor living and entertaining options.
The valuation. The asking price of €330,000 is significantly below the fair value of €466,804, representing a discount of €136,804 (41.5%). This presents a compelling opportunity for potential investors seeking value. Buy-to-flip angle. With a focus on renovation, the strategy would involve enhancing the property’s condition to attract buyers for resale at a higher price point. Given its location in Albufeira, this could yield a favorable return. Buy-to-let angle. The rental income strategy can leverage the area's tourism appeal, utilizing the property for short-term vacation rentals. This can capitalize on the high visitor traffic in the Algarve region, maximizing cash flow potential.
Fair value modelled at €347,112 from the area baseline, adjusted for condition and location. Asking €330,000 sits €17,112 (5.2%) below — the upside to fair value.
Asking €330,000 versus the rua de Dunfermline area baseline of €339,808 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 71 · Materials 66 · Room dimensions 67). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 64/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
rua de Dunfermline
Area baseline €339,808 + condition -€11,725 + location +€19,029 = modelled fair value of €347,112 (€3,099/m²), a €17,112 (5.2%) gap versus the €330,000 asking price.
Short-term vacation rental The property in Albufeira, with a fair value significantly higher than the listing price, presents an attractive proposition for short-term vacation rentals. Given its strategic location within a tourism hotspot, potential returns are aligned with the growing demand from domestic and international travelers. Long-term rental Although the current yield is at 0%, the substantial gap to fair value indicates potential appreciation over time, making this property a viable option for long-term rental purposes. The neighborhood's solid amenities and tourism-driven demand enhance the likelihood of sustained occupancy and stable rental income. Buy-and-hold With a listing price that is 41.5% below the fair value, this property offers an exceptional opportunity for a buy-and-hold strategy. The area's reliance on tourism suggests long-term capital growth, positioning this investment favorably in a dynamic market. Not ideal for: Student housing, Luxury market, Industrial investment This property does not align with student housing needs or the luxury market due to its location and neighborhood ratings. Additionally, it does not lend itself well to industrial investment given the prevailing economic context in Albufeira.
Economic Vulnerability The property is at risk due to its average economic stability score of 60/100, which indicates potential fluctuations in the local economy affecting investment returns.Tenant Stability Risk With a tenant stability score of 60/100, there is a notable risk of tenant turnover leading to possible vacancy periods and loss of rental income.
