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 136 m², built in 2008, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property includes a private terrace ideal for outdoor dining and relaxation, and the condominium benefits from a borehole, reducing maintenance costs for gardens and pools.
The valuation. The asking price of €395,000 is significantly below the fair value of €458,561, marking a difference of €63,561 (16.1%). This property is considered underpriced given its location and features.
Fair value modelled at €458,561 from the area baseline, adjusted for condition and location. Asking €395,000 sits €63,561 (16.1%) below — the upside to fair value.
Asking €395,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €412,624 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 72 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €412,624 + condition +€4,675 + location +€41,262 = modelled fair value of €458,561 (€3,372/m²), a €63,561 (16.1%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 261e47 | Subject | €395,000 | €2,904 | — | 72 | 75 |
| Ferreiras · cfe03c | Active | €470,000 | €2,994 | 3.1% | 75 | 67 |
| Ferreiras · 6fbc4c | Active | €405,000 | €3,347 | 15.2% | 75 | 72 |
| Ferreiras · 6fbc55 | Active | €555,000 | €2,775 | 4.5% | 75 | 78 |
| Albufeira e Olhos de Água · 0238ea | Active | €575,000 | €2,162 | 25.6% | 72 | 72 |
| Median comp | €512,500 | €2,885 | 0.7% | 75 | 72 |
Long-term rental The property in Albufeira e Olhos de Água presents a lucrative opportunity for long-term rental, with a fair value exceeding the listing price by 16.1%, indicating it is subvalued in the current market. A gross yield of 4.4% further supports the potential for steady cash flow in this desirable area. Short-term vacation rental This 2-bed house is well-positioned for short-term vacation rental, capitalizing on Algarve's tourism-driven economy and the property being priced 16.1% below fair value. With good condition ratings and local amenities, it has strong appeal to potential tourists seeking accommodations in Albufeira. Buy-and-hold Investing in this property for a buy-and-hold strategy is supported by its fair valuation being 16.1% higher than the listing, indicating significant upside potential. The area's low crime rates and neighbourhood amenities enhance its long-term appreciation prospects, making it a sound investment choice. Not ideal for: Student housing, Industrial development, Luxury market The characteristics of the property and its location do not align with the needs of student housing, which typically demand proximity to educational institutions. Additionally, the residential nature of Albufeira e Olhos de Água limits opportunities for industrial development and the luxury market, where buyer expectations may not be met.
Economic Downturn Risk The combination of a 70/100 economic stability score suggests potential vulnerability to economic shifts, which may impact tenant demand and overall rental income.
