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, 3-bathroom penthouse of 222 m², built in 2008, energy rating B. Located on rua do Município S / N N1, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: This penthouse offers a 56 m² private terrace, perfect for al fresco dining while enjoying unobstructed ocean views, enhancing the luxury lifestyle of Algarve living.
The valuation. The asking price of €540,000 sits significantly below the fair value of €763,264. This presents an opportunity as the property is underpriced by €223,264 (41.3%).
Fair value modelled at €763,264 from the area baseline, adjusted for condition and location. Asking €540,000 sits €223,264 (41.3%) below — the upside to fair value.
Asking €540,000 versus the rua do Município S / N N1 area baseline of €673,548 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 82 · Materials 88 · Room dimensions 87). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Município S / N N1
Area baseline €673,548 + condition +€27,750 + location +€61,966 = modelled fair value of €763,264 (€3,438/m²), a €223,264 (41.3%) gap versus the €540,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Município S / N N1 | Subject | €540,000 | €2,432 | — | 82 | 73 |
| Albufeira e Olhos de Água · 001855 | Active | €655,000 | €3,722 | 53.0% | 78 | 65 |
| rua do Município | Active | €540,000 | €2,687 | 10.4% | 80 | 70 |
| Albufeira e Olhos de Água · 1e6357 | Active | €699,000 | €4,629 | 90.3% | 78 | 70 |
| Albufeira e Olhos de Água · 99f1b3 | Active | €475,000 | €2,714 | 11.6% | 75 | 72 |
| Median comp | €597,500 | €3,218 | 32.3% | 78 | 70 |
Short-term vacation rental The property presents an attractive opportunity for short-term vacation rental, with a compelling price gap of 41.3% versus its fair value of €763,264. Given Albufeira's popularity as a tourist destination, this penthouse could see seasonal high demand despite the current yield of 0%. Long-term rental While the property has a solid condition rating of 86/100, the estimated fair value suggests potential for increased rental income if utilized for long-term leasing. However, it may not fully capitalize on the current market demand given the yield stands at 0%, warranting a careful investment approach. Buy-and-hold Investing in this penthouse as a buy-and-hold strategy is promising due to its significant gap from fair value, indicating potential appreciation over time. The desirable location within the Algarve, coupled with a stable neighborhood score of 73/100, positions this asset well for future value growth, despite the current underwhelming yield. Not ideal for: Student housing, Luxury market
Tenant turnover risk The tenant stability score of 70/100 indicates a potential risk of fluctuating occupancy levels, which may impact cash flow stability if tenants decide to leave.
