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 148 m², energy rating B. Located on avenida dos Descobrimentos, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property features a covered gourmet area with a barbecue, ideal for outdoor entertaining while surrounded by well-maintained fruit trees, enhancing its natural charm and leisure space.
The valuation. The asking price of €695,000 sits €199,053 (28.6%) above its fair value of €495,947, clearly indicating that this property is overpriced. Buy-to-flip angle. A buy-to-flip strategy could target renovation to enhance value, aiming for a quick resale at a competitive price in the thriving Algarve market. Buy-to-let angle. The rental income potential is estimated at €1,390 monthly, presenting a gross yield of 2.4%, ideal for long-term family rentals or short-term vacation rentals, capitalizing on the area's tourism appeal.
Fair value modelled at €495,947 from the area baseline, adjusted for condition and location. Asking €695,000 sits €199,053 (28.6%) above — overpriced versus fair value.
Asking €695,000 versus the avenida dos Descobrimentos area baseline of €449,032 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 83 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
avenida dos Descobrimentos
Area baseline €449,032 + condition +€7,400 + location +€39,515 = modelled fair value of €495,947 (€3,351/m²), a €199,053 (28.6%) gap versus the €695,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida dos Descobrimentos | Subject | €695,000 | €4,696 | — | 75 | 72 |
| Albufeira e Olhos de Água · f360a1 | Active | €450,000 | €5,556 | 18.3% | 75 | 74 |
| Albufeira e Olhos de Água · 956f02 | Active | €475,000 | €3,800 | 19.1% | 72 | 65 |
| Albufeira e Olhos de Água · 090272 | Active | €750,000 | €4,167 | 11.3% | 70 | 71 |
| Albufeira e Olhos de Água · 6fb9c1 | Active | €615,000 | €3,661 | 22.0% | 82 | 75 |
| Median comp | €545,000 | €3,984 | 15.2% | 74 | 73 |
Short-term vacation rental The property is overpriced by 28.6% against its fair value of €495,947, limiting its appeal as a short-term vacation rental. With a low gross yield of 2.4%, the investment may not generate sufficient income to justify the initial outlay. Buy-and-hold Investing in this property as a buy-and-hold strategy is not recommended due to the significant gap between its listing price and fair value. The 2.4% gross yield, combined with its inflated price, suggests that the return on investment would be inadequate over the long term. Family rental This property is overpriced for a family rental strategy, with a fair value that is significantly lower than the current listing price. The combination of a low gross yield and overvaluation does not align with the investment goals typically associated with long-term family rentals.
Economic and Tenant Risk: With both economic stability and tenant stability scores at 65/100, there is a 35% likelihood of encountering challenges related to rental income and property value fluctuations due to potential market instability.
