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 duplex of 201 m², energy rating B. Located on rua do Município, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property boasts a rare 56 m² private terrace, offering unobstructed sea views and a unique outdoor space ideal for year-round relaxation and entertaining. Valuation Verdict: Fair.
The valuation. The asking price of €540,000 is notably below the fair value of €683,746, representing a significant discount of €143,746 (26.6%). This property is considered underpriced, making it a potential opportunity for savvy investors.
Fair value modelled at €683,746 from the area baseline, adjusted for condition and location. Asking €540,000 sits €143,746 (26.6%) below — the upside to fair value.
Asking €540,000 versus the rua do Município area baseline of €693,450 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Município
Area baseline €693,450 + condition +€25,125 + location +€48,787 = modelled fair value of €683,746 (€3,402/m²), a €143,746 (26.6%) gap versus the €540,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Município | Subject | €540,000 | €2,687 | — | 80 | 70 |
| Albufeira e Olhos de Água · 99f1b3 | Active | €475,000 | €2,714 | 1.0% | 75 | 72 |
| rua do Município S / N N1 | Active | €540,000 | €2,432 | 9.5% | 82 | 73 |
| Albufeira e Olhos de Água · 001855 | Active | €655,000 | €3,722 | 38.5% | 78 | 65 |
| Albufeira e Olhos de Água · 023874 | Active | €535,000 | €2,524 | 6.1% | 78 | 78 |
| Median comp | €537,500 | €2,619 | 2.5% | 78 | 73 |
Short-term vacation rental The property's fair value of €683,746 provides a significant opportunity for short-term vacation rentals in the popular Algarve region. Given the strong demand for tourist accommodation and the property's decent condition, it has the potential for attractive returns despite a current gross yield of 0%. Buy-and-hold Investing in this 2-bed duplex offers the potential for long-term appreciation given the property is already priced 26.6% below its fair value. The strong tourist draw of Albufeira can result in significant equity growth over time, making this a favorable buy-and-hold strategy. Family rental With the property being positioned at a fair value significantly higher than its listing, it is a reasonable option for family rentals despite the average quality of the neighbourhood. While education infrastructure is not exceptional, the demand from families seeking longer-term housing in a tourist-friendly area justifies its investment appeal.
Economic Vulnerability The economic stability score of 55/100 indicates a significant risk of economic downturns affecting property value and rental income stability.
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