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 300 m², built in 2000, energy rating C. Located on urbanização Alto dos Caliços, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property includes a spacious attic that can be transformed into additional bedrooms or an expansive storage area, enhancing its functionality and investment appeal.
The valuation. The asking price of €420,000 is significantly below the fair value of €989,001, indicating a disparity of €569,001 (135.5%). This property is clearly underpriced in the current market context.
Fair value modelled at €989,001 from the area baseline, adjusted for condition and location. Asking €420,000 sits €569,001 (135.5%) below — the upside to fair value.
Asking €420,000 versus the urbanização Alto dos Caliços area baseline of €910,200 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 73 · Materials 78 · Room dimensions 76). 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.
urbanização Alto dos Caliços
Area baseline €910,200 + condition +€2,344 + location +€76,457 = modelled fair value of €989,001 (€3,297/m²), a €569,001 (135.5%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Alto dos Caliços | Subject | €420,000 | €1,400 | — | 73 | 71 |
| Albufeira e Olhos de Água · 82c7e1 | Active | €420,000 | €1,944 | 38.9% | 70 | 73 |
| Albufeira e Olhos de Água · 023b92 | Active | €380,000 | €2,262 | 61.6% | 65 | 73 |
| Albufeira e Olhos de Água · ba3e5d | Active | €420,000 | €2,295 | 63.9% | 72 | 76 |
| Albufeira e Olhos de Água · 96c6ca | Active | €849,000 | €3,949 | 182.1% | 72 | 74 |
| Median comp | €420,000 | €2,279 | 62.7% | 71 | 74 |
Short-term vacation rental With a notable yield of 7.3% gross and a fair value gap of 135.5%, this property presents a strong opportunity for short-term vacation rentals in a prime tourist location of the Algarve. The house's condition rating of 76/100 and its vicinity to popular tourist areas further enhance its attractiveness for seasonal visitors. Long-term rental The property offers significant potential for long-term rental given the 7.3% gross yield, suggesting steady rental income in a desirable tourist destination. The overall condition and favorable neighborhood dimensions provide a reliable base for attracting tenants seeking extended accommodations. Buy-and-hold Investing in this property as a buy-and-hold strategy is compelling due to its fair value of €989,001 versus the listing price of €420,000, resulting in an impressive 135.5% gap. The property's location in Albufeira, coupled with its solid condition score, indicates promising appreciation potential over the long term.
Economic vulnerability The property is exposed to potential economic downturns, given its economic stability score of 65/100, which indicates limited resilience in adverse conditions.
