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 apartment of 80 m², energy rating B. Located on rua dos Ibíscos, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property includes underfloor heating and solar panels for energy efficiency, along with spacious private terraces that offer excellent sun exposure. Investment Opportunity: The option to acquire an adjacent unit allows for the creation of a unique four-bedroom residence with expansive outdoor spaces, enhancing potential for appreciation.
The valuation. The asking price of €390,000 is significantly above fair value, which sits at €269,425, resulting in an overpricing of €120,575 (30.9%). Verdict: overpriced.
Fair value modelled at €269,425 from the area baseline, adjusted for condition and location. Asking €390,000 sits €120,575 (30.9%) above — overpriced versus fair value.
Asking €390,000 versus the rua dos Ibíscos area baseline of €242,720 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 80 · Materials 75 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua dos Ibíscos
Area baseline €242,720 + condition +€4,375 + location +€22,330 = modelled fair value of €269,425 (€3,368/m²), a €120,575 (30.9%) gap versus the €390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua dos Ibíscos | Subject | €390,000 | €4,875 | — | 80 | 73 |
| avenida Sá Carneiro | Active | €290,000 | €4,462 | 8.5% | 74 | 64 |
| Albufeira e Olhos de Água · 9567b4 | Active | €350,000 | €4,667 | 4.3% | 80 | 76 |
| Albufeira e Olhos de Água · 99f3a2 | Active | €295,000 | €6,146 | 26.1% | 76 | 71 |
| estrada de Albufeira S / N D | Active | €550,000 | €5,789 | 18.8% | 75 | 73 |
| Median comp | €322,500 | €5,228 | 7.2% | 76 | 72 |
Short-term vacation rental The property is overpriced by 30.9% compared to its fair value, which diminishes the potential return for investors in short-term vacation rentals. With a gross yield of only 3.9%, the financial performance does not justify the current listing price given the competitive rental market in the Algarve. Buy-and-hold Although the location is attractive due to its tourism appeal, the 30.9% gap from fair value indicates that this buy-and-hold strategy is not advisable at the current price point. Investors would find it challenging to achieve optimal long-term appreciation with a listing price that significantly exceeds its fair value. Family rental While the property is situated in a developed coastline area with decent local amenities, its current listing at €390,000 is overpriced by 30.9%, complicating its viability as a family rental. The gross yield of 3.9% suggests limited potential for future growth in a competitive rental market that demands better pricing strategies.
Economic and Tenant Stability Risk With both economic and tenant stability scores at 70/100, there is a moderate risk of fluctuations in occupancy rates and rental income due to potential economic downturns affecting tenant retention and demand for the property.
