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.
1-bedroom, 1-bathroom apartment of 48 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features a large terrace with magnificent ocean views, perfect for outdoor entertaining, and is located just steps from Monica Isabel Beach, enhancing its appeal in the Algarve.
The valuation. The asking price of €219,000 is significantly above the fair value of €156,290, resulting in an overpriced assessment of €62,710 (28.6% premium). This indicates a lack of inherent value in the current market context. Buy-to-flip angle. The resale strategy targets a renovation-focused approach to capitalize on improvements, with potential buyers likely to seek increased property aesthetics in Albufeira’s competitive market. Buy-to-let angle. The rental income strategy projects a gross yield of 4.1%, with an estimated monthly income of €748, appealing to long-term tenants in a location with seasonal tourist activity and favorable amenities.
Fair value modelled at €156,290 from the area baseline, adjusted for condition and location. Asking €219,000 sits €62,710 (28.6%) above — overpriced versus fair value.
Asking €219,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €145,632 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 (Condition 75 · Materials 74 · Room dimensions 71). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 75 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €145,632 + condition -€1,575 + location +€12,233 = modelled fair value of €156,290 (€3,256/m²), a €62,710 (28.6%) gap versus the €219,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · ba573d | Subject | €219,000 | €4,563 | — | 75 | 71 |
| Albufeira e Olhos de Água · 956eb7 | Active | €219,000 | €4,563 | 0% | 74 | 75 |
| avenida da Liberdade, 117 | Active | €295,000 | €6,277 | 37.6% | 80 | 63 |
| Albufeira e Olhos de Água · 82c749 | Active | €2,850,000 | €45,238 | 891.5% | 62 | 70 |
| Albufeira e Olhos de Água · ba58bd | Active | €202,500 | €3,616 | 20.7% | 74 | 65 |
| Median comp | €257,000 | €5,420 | 18.8% | 74 | 68 |
Short-term vacation rental This property, listed at €219,000, significantly exceeds its fair value of €156,290, creating a 28.6% gap. Given the gross yield of only 4.1%, the investment potential for a short-term vacation rental in this location is diminished due to its overpriced nature. Buy-and-hold With the current valuation placing this property above its fair market value, long-term appreciation as a buy-and-hold strategy appears unpromising. The combination of a 4.1% gross yield and high initial cost limits the financial viability of holding this asset. Family rental Investing in this one-bedroom apartment for family rental is unsuitable due to its overpriced status, which may lead to reduced demand and higher vacancy rates. A fair value assessment shows that the property costs too much relative to its potential rental income, making it less attractive for this strategy.
Moderate Economic Risk The economic stability score of 55/100 suggests potential volatility in the local economy, which may impact tenant retention and property value over time.
