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.
3-bedroom, 2-bathroom apartment of 107 m², built in 1988, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The apartment includes a Local Accommodation License (AL) for rental, ensuring an immediate investment opportunity in a highly sought-after tourist area with a sea view.
The valuation. The asking price of €389,990 is significantly above fair value of €339,602, representing an overpricing of €50,388 (12.9%). This indicates that the property's current valuation is not justifiable based on comparable market analyses.
Fair value modelled at €339,602 from the area baseline, adjusted for condition and location. Asking €389,990 sits €50,388 (12.9%) above — overpriced versus fair value.
Asking €389,990 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €324,638 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 74). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €324,638 + condition -€4,514 + location +€19,478 = modelled fair value of €339,602 (€3,174/m²), a €50,388 (12.9%) gap versus the €389,990 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · dee3af | Subject | €389,990 | €3,645 | — | 70 | 65 |
| largo das Ilhas | Active | €549,000 | €4,037 | 10.8% | 74 | 76 |
| avenida Sá Carneiro | Active | €290,000 | €4,462 | 22.4% | 74 | 64 |
| rua da Figueira, 21 | Active | €350,000 | €4,268 | 17.1% | 75 | 72 |
| rua António Aleixo, 2 | Active | €378,000 | €4,200 | 15.2% | 68 | 71 |
| Median comp | €364,000 | €4,234 | 16.2% | 74 | 72 |
Short-term vacation rental This property in Albufeira e Olhos de Água, priced at €389,990, is overpriced compared to its fair value of €339,602, indicating potential challenges in achieving attractive rental yields in a competitive market. The 4% gross yield highlights the limitations of short-term rentals in a region influenced by seasonal tourism patterns, further complicating financial viability. Buy-and-hold Considering the price tag of €389,990 surpassing the fair value by 12.9%, holding this property long-term may not yield the anticipated capital appreciation or stability in rental income. The lower-than-ideal neighbourhood rating of 65/100 suggests ongoing challenges that could hinder long-term investment growth. Long-term rental With a competitive market where this property is priced at €389,990, it fails to align with its fair value of €339,602, making it a less favorable option for long-term rental strategies. The 4% gross yield reflects the potential difficulties in achieving sustainable rental income, particularly given the seasonal employment factors inherent to tourist-heavy regions. Not ideal for: This property is not suitable for student housing, value-add renovation, or targeting the luxury market, as its current pricing and condition do not support a viable repositioning strategy.
Tenant turnover risk The tenant stability score of 65 indicates a moderate risk of tenant turnover, which may lead to increased vacancy rates and associated costs.
