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 183 m², built in 1993, energy rating E. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property includes a garden annex, providing flexible additional space for storage or an office, enhancing its functional appeal for various lifestyle needs.
The valuation. The asking price of €420,000 is significantly below the fair value of €820,281, presenting a difference of €400,281 (95.3%). This property is underpriced and offers a unique opportunity for investment.
Fair value modelled at €615,824 from the area baseline, adjusted for condition and location. Asking €420,000 sits €195,824 (46.6%) below — the upside to fair value.
Asking €420,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €555,222 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 80 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx. Full condition report →
Neighbourhood score 76/100 (Housing Market 78 · Amenities 82 · Economic 68 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €555,222 + condition +€2,859 + location +€57,743 = modelled fair value of €615,824 (€3,365/m²), a €195,824 (46.6%) gap versus the €420,000 asking price.
Short-term vacation rental This 2-bed house, with a fair value of €820,281, presents a significant pricing gap of 95.3% at its listing price of €420,000, making it a compelling opportunity for short-term vacation rentals. Given its proximity to the Algarve coast and a neighborhood with a commendable score of 76/100, it is well-positioned to attract tourists year-round, yielding a gross rental return of 4.2%. Buy-and-hold Investing in this property as a buy-and-hold strategy is promising, with a robust fair value that indicates substantial appreciation potential. The stable economy driven by tourism assures that employment and rental demand will remain strong, supporting long-term property appreciation. Family rental As a family rental, this property benefits from a neighborhood score of 76/100, indicating a healthy living environment, bolstered by local amenities that cater to families and tourists alike. The fair value assessment highlights the property’s potential for rental income, complementing its attractive overall condition rating of 76/100.
Economic Vulnerability The economic stability score of 68/100 indicates a potential risk due to fluctuating economic conditions that may affect tenant retention and rental income.
