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, 1-bathroom townhouse of 81 m². Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Outdoor Feature: The south-facing terrace, pre-installed for BBQ and outdoor amenities, enhances the property’s appeal for entertaining and relaxation. Location Advantage: Just a short walk to the beach and Old Town.
The valuation. The asking price of €450,000 is significantly above the fair value of €273,523, indicating an overpriced status of €176,477 (39.2%). Such a discrepancy suggests that potential investors should be cautious. Buy-to-flip angle. The resale strategy for this townhouse would focus on cosmetic updates to capitalize on its stylish finishes, with a projected resale value likely exceeding €500,000. Aiming for a quick turnover could yield a profitable increase. Buy-to-let angle. The rental income strategy would involve short-term vacation rentals, potentially generating a gross yield of 3.2% at approximately €1,200 per month. Given the seasonal tourism, the rental market demands careful timing for maximized occupancy rates.
Fair value modelled at €273,523 from the area baseline, adjusted for condition and location. Asking €450,000 sits €176,477 (39.2%) above — overpriced versus fair value.
Asking €450,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €281,556 (€3,476/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 74/100 (Housing Market 75 · 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 €281,556 + condition +€4,177 + location +€23,592 = modelled fair value of €273,523 (€3,377/m²), a €176,477 (39.2%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · f360a1 | Subject | €450,000 | €5,556 | — | 75 | 74 |
| Ferreiras · 6fbc4c | Active | €405,000 | €3,347 | 39.8% | 75 | 72 |
| Albufeira e Olhos de Água · 261e47 | Active | €395,000 | €2,904 | 47.7% | 72 | 75 |
| avenida dos Descobrimentos | Active | €695,000 | €4,696 | 15.5% | 75 | 72 |
| rua Sir Cliff Richard | Active | €1,450,000 | €7,592 | 36.6% | 65 | 78 |
| Median comp | €550,000 | €4,022 | 27.6% | 74 | 74 |
Short-term vacation rental The property is overpriced at €450,000 compared to a fair value of €273,523, creating a 39.2% gap that undermines its potential as a profitable short-term vacation rental. With a gross yield of only 3.2%, its financial viability is questionable given the seasonal nature of the tourism-driven demand. Buy-and-hold Investing in this property as a buy-and-hold strategy does not present a favorable opportunity due to its overpriced status, being listed at €450,000 while the fair value is significantly lower at €273,523. The suboptimal yield of 3.2% combined with the high acquisition costs makes long-term appreciation unlikely to overcome the initial investment. Family rental As a family rental, this townhouse proves to be a poor investment choice due to its inflated price of €450,000 versus a fair value of €273,523. The property's current yield of 3.2% does not justify the investment, especially in a market where housing demand is heavily influenced by seasonal tourism rather than stable family occupancy.
Economic Sensitivity Risk The economic stability score of 65/100 suggests potential vulnerability to economic downturns, which may lead to tenant turnover or vacancy.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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