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 47 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: This studio includes a private balcony with views over a green area, enhancing both its aesthetic appeal and potential rental value for tourists.
The valuation. The asking price of €202,500 is significantly above the fair value of €156,779, creating a gap of €45,721 (22.6%). This property is overpriced according to current market assessments.
Fair value modelled at €156,779 from the area baseline, adjusted for condition and location. Asking €202,500 sits €45,721 (22.6%) above — overpriced versus fair value.
Asking €202,500 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €142,598 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €142,598 + condition +€2,203 + location +€11,978 = modelled fair value of €156,779 (€3,336/m²), a €45,721 (22.6%) gap versus the €202,500 asking price.
Short-term vacation rental Given the strong tourism reliance in the Algarve, the property's gross yield of 4.9% may initially seem attractive; however, at a listing price of €202,500, this property remains overpriced by 22.6% compared to its fair value of €156,779. The demand for vacation rentals in Albufeira can be high, yet the pricing does not align with market expectations, suggesting a poor investment decision. Long-term rental While the housing demand in Albufeira indicates potential for long-term rental agreements, the property’s 4.9% gross yield is hindered by its overpriced listing of €202,500 versus the fair value of €156,779, representing a 22.6% gap. With tenant quality and neighborhood ratings being moderate, investing in this property would not be advisable under the current pricing. Buy-and-hold The buy-and-hold strategy here is not feasible, as the property's listing price of €202,500 is 22.6% above its fair value of €156,779, resulting in a concerning investment over time. Although the location benefits from tourism, the inflated price diminishes potential returns, making this an unattractive option for long-term growth.
Economic Vulnerability The economic stability score of 55/100 indicates potential instability in the local market that could affect rental income and property value negatively.
