Apartment in Albufeira e Olhos de Água

Overview

2-bedroom, 1-bathroom apartment of 75 m², built in 1988, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy features: The apartment offers direct access to a communal pool and a private terrace, enhancing its outdoor living potential within a short walk to the beach.

Financial Summary

The valuation. The asking price of €279,000 sits beneath the fair value of €319,833, indicating a potential gain of €40,833 (14.6%). This property is categorized as underpriced and presents an attractive buying opportunity.

Investment Thesis

Short-term vacation rental This 2-bed apartment in Albufeira e Olhos de Água is an excellent opportunity for short-term vacation rentals, being an attractive destination in the Algarve region. With a fair value gap of 14.6% and a gross yield of 4.7%, the property presents a solid investment potential for tourists seeking accommodation in a vibrant area. Long-term rental Given its competitive pricing and fair value, the apartment is well-positioned to attract long-term renters, benefiting from the amenities and economic conditions in the neighbourhood. The 4.7% gross yield indicates stable rental income prospects for those looking to hold the property over time. Buy-and-hold Investing in this property as a buy-and-hold strategy can yield substantial returns due to its current valuation being 14.6% below fair value. With a strong rental market in the Algarve and a fair condition score of 69/100, it may appreciate over time, offering future financial gains.

Risks

Economic vulnerability The economic stability score of 60/100 indicates a potential risk of economic downturns impacting property values and rental income.

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