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.
1-bedroom, 1-bathroom apartment of 64 m², built in 1974, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features a cozy living room with a fireplace, perfect for relaxation, and a balcony that offers unobstructed sea views, enhancing the overall living experience.
The valuation. The asking price of €265,000 is €72,937 (27.5%) above the fair value of €192,063, indicating the property is overpriced. This misalignment suggests a lack of investment potential based on current market conditions.
Fair value modelled at €192,063 from the area baseline, adjusted for condition and location. Asking €265,000 sits €72,937 (27.5%) above — overpriced versus fair value.
Asking €265,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €194,176 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 56/100 (Condition 60 · Materials 50 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €194,176 + condition -€19,200 + location +€17,087 = modelled fair value of €192,063 (€3,001/m²), a €72,937 (27.5%) gap versus the €265,000 asking price.
Short-term vacation rental Given the property's high listing price of €265,000 compared to its fair value of €192,063, investing in this short-term vacation rental strategy may yield disappointing returns. With a gross yield of only 3.4%, the attractiveness of this asset diminishes significantly in a competitive tourism market. Long-term rental The apartment's pricing, which reflects a significant gap of 27.5% from fair value, suggests that it may not be a sound choice for long-term rental investments. A gross yield of 3.4% indicates limited income potential in a location that heavily relies on seasonal tourism. Buy-and-hold As a buy-and-hold investment, the apartment comes with a high purchase price that compromises expected capital appreciation, given the fair value assessment. The existing condition rating of 56/100 further complicates the outlook, implying potential future expenses for renovations or maintenance. Not ideal for: Luxury market, Student housing The property is clearly overpriced for entry into the luxury market, making it less appealing to affluent buyers. Additionally, its location and current condition do not meet the needs of student housing, which typically requires higher tenant quality and amenities in proximity.
Economic Vulnerability The economic stability score of 65/100 suggests that there may be potential fluctuations in the local economy that could impact rental income.
