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 apartment of 149 m², built in 2009, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property includes an attic suite with air conditioning and private access, enhancing its appeal for potential rental income or exclusive use. Location Advantage: Situated 200 meters from Peneco beach in a quiet area shielded from noise yet near vibrant local amenities.
The valuation. The asking price of €360,000 sits €126,027 below the fair value of €486,027, indicating the property is underpriced by 35.0%. This presents a significant opportunity for potential investors. Buy-to-flip angle. The strategy focuses on acquiring the apartment at a lower price to renovate and sell quickly, capitalizing on the strong demand in Albufeira’s tourist market. This could maximize returns from any value-added improvements. Buy-to-let angle. With an estimated rental income of €1,470 per month, the gross yield of 4.9% is appealing for long-term investment. Its location in a popular tourist area supports strong vacation rental potential, enhancing income prospects.
Fair value modelled at €486,027 from the area baseline, adjusted for condition and location. Asking €360,000 sits €126,027 (35.0%) below — the upside to fair value.
Asking €360,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €452,066 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 75 · Materials 70 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €452,066 + condition -€5,820 + location +€39,782 = modelled fair value of €486,027 (€3,262/m²), a €126,027 (35.0%) gap versus the €360,000 asking price.
Short-term vacation rental The property is well-positioned for the short-term vacation rental market in Albufeira, supported by its Algarve location and strong tourist appeal. With a current yield of 4.9% gross, there is significant potential for increased revenue given the 35.0% gap to fair value of €486,027. Family rental This 2-bed apartment is suitable for family rentals due to its spacious 149m² layout and favorable neighborhood rating of 72/100. Considering its fair value is considerably higher than the listing price, families could find it an appealing option in a desirable area. Long-term rental Capitalizing on the increasing demand for long-term rental units in a tourist-heavy area, this property offers a solid avenue for stable rental income. The fair value indicates that there is room for appreciation, making it a prudent choice for investors seeking long-term growth. Not ideal for student housing Given the limited educational facilities in Albufeira compared to urban centers, this property is not suitable for student housing investments. The subpar neighborhood score for educational amenities indicates that it would not attract this demographic. Not ideal for industrial investment With the property's residential nature and location, it is ill-suited for industrial investment opportunities. The surrounding area is more favorable for residential uses, minimizing potential value appreciation in industrial sectors. Not ideal for luxury market Due to its current valuation and neighborhood ratings, this property does not align with luxury market standards. Investors looking for high-end opportunities may find better options outside of this listing.
Tenant turnover risk With a tenant stability score of 70/100, there is a moderate risk of frequent tenant turnover which can impact cash flow and increase vacancy periods.
