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.
3-bedroom, 2-bathroom townhouse of 266 m², built in 1987, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Highlight: The townhouse features a rare 119.5 m² private rooftop terrace, complete with a barbecue area and support sink, ideal for outdoor dining and relaxation.
The valuation. The asking price of €575,000 is significantly below the fair value of €881,389, indicating a difference of €306,389 (53.3%). This property is underpriced relative to its market value.
Fair value modelled at €881,389 from the area baseline, adjusted for condition and location. Asking €575,000 sits €306,389 (53.3%) below — the upside to fair value.
Asking €575,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €917,700 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 78 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €917,700 + condition +€3,325 + location +€71,020 = modelled fair value of €881,389 (€3,313/m²), a €306,389 (53.3%) gap versus the €575,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 0238ea | Subject | €575,000 | €2,162 | — | 72 | 72 |
| Albufeira e Olhos de Água · 261e47 | Active | €395,000 | €2,904 | 34.4% | 72 | 75 |
| Ferreiras · 6fbc55 | Active | €555,000 | €2,775 | 28.4% | 75 | 78 |
| Albufeira e Olhos de Água · 023b92 | Active | €380,000 | €2,262 | 4.6% | 65 | 73 |
| rua do Castelinho, 1 | Active | €649,000 | €1,997 | 7.6% | 72 | 72 |
| Median comp | €475,000 | €2,519 | 16.5% | 72 | 74 |
Short-term vacation rental The property is located in Algarve, a key tourist hotspot, which presents a strong opportunity for short-term vacation rentals. With a fair value significantly higher than the listing price, the potential for lucrative returns is bolstered by an attractive gross yield of 8.4%. Long-term rental Given the neighborhood's decent rating of 72/100, the townhouse would appeal to a range of long-term tenants, ensuring steady cash flow. The current pricing reflects a substantial gap from its fair value, making it a sound investment for sustained rental income. Buy-and-hold Investing in this townhouse as a buy-and-hold strategy is promising due to its considerable difference from fair value, suggesting strong appreciation potential. The gross yield of 8.4% also indicates a favorable income return while the property can appreciate in a desirable market environment. Not ideal for: Student housing, Luxury market, Industrial use
Economic-Tenant Disparity Risk With both economic and tenant stability scores at 70/100, there is a potential risk of lower demand in a downturn, possibly leading to increased vacancy rates or rent fluctuations.
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