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, 2-bathroom house of 168 m², built in 1985, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property includes a spacious private garden and an additional multifunctional room, enhancing its appeal for both personal use and rental opportunities.
The valuation. The asking price of €380,000 sits significantly below the fair value of €524,318, indicating it is underpriced by €144,318 (38.0%). This presents an attractive investment opportunity for discerning buyers. Buy-to-flip angle. A buy-to-flip strategy could involve minor renovations to modernize the home, enabling a quick resale at a higher price point in the thriving Algarve market. Buy-to-let angle. With an estimated gross yield of 4.1% and potential rental income of approximately €1,298/month, the property could provide steady cash flow through long-term or short-term rental options due to its prime location.
Fair value modelled at €524,318 from the area baseline, adjusted for condition and location. Asking €380,000 sits €144,318 (38.0%) below — the upside to fair value.
Asking €380,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €579,600 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 63/100 (Condition 65 · Materials 60 · Room dimensions 66). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €579,600 + condition -€32,287 + location +€46,894 = modelled fair value of €524,318 (€3,121/m²), a €144,318 (38.0%) gap versus the €380,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 023b92 | Subject | €380,000 | €2,262 | — | 65 | 73 |
| Albufeira e Olhos de Água · 82c7e1 | Active | €420,000 | €1,944 | 14.0% | 70 | 73 |
| rua do Malpique | Active | €630,000 | €1,326 | 41.4% | — | 65 |
| urbanização Alto dos Caliços | Active | €420,000 | €1,400 | 38.1% | 73 | 71 |
| Albufeira e Olhos de Água · ba3e5d | Active | €420,000 | €2,295 | 1.5% | 72 | 76 |
| Median comp | €420,000 | €1,672 | 26.1% | 72 | 72 |
Short-term vacation rental The property is well-positioned in Albufeira, a popular tourist destination, and its fair value suggests significant upside potential for short-term rental income. With an attractive gross yield of 4.1%, it presents an appealing opportunity in the seasonal vacation rental market. Long-term rental With a fair value of €524,318, the property allows for competitive long-term rental pricing in a desirable location, ensuring stable cash flow. The neighbourhood rating of 73/100 indicates a supportive environment for building a reliable tenant base. Buy-and-hold As the property is priced below its fair value, it represents a solid long-term investment that can appreciate in a thriving tourism market. The current condition rating of 63/100 suggests that, while some maintenance may be necessary, the overall potential for value increase remains strong.
Economic Vulnerability With an economic stability score of 65/100, there is a risk of economic downturns affecting property value and tenant retention.
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