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 95 m², built in 2004, energy rating C. Located on estrada de Albufeira S / N D, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Property Features: The apartment is part of Villas d'Água Beachfront Resort, boasting 24-hour security, a swimming pool, and plans for on-site dining and health amenities by late 2024. Características do Imóvel: O apartamento está integrado no Villas d'Água Beachfront Resort, apresentando segurança 24 horas, uma piscina e planos para serviços de restauração e saúde no local até ao final de 2024.
The valuation. The asking price of €550,000 exceeds the fair value of €319,942 by €230,058, indicating an overpriced property at 41.8% above its value. This disconnect signifies a challenging investment opportunity. Buy-to-flip angle. A buy-to-flip strategy would require substantial price appreciation post-renovation to justify the high initial investment, but current market conditions suggest limited potential for significant markup. Buy-to-let angle. Generating an estimated monthly rental income of €1,238 equates to a gross yield of 2.7%, making it less attractive for long-term holding in a competitive rental market driven by seasonal tourism.
Fair value modelled at €319,942 from the area baseline, adjusted for condition and location. Asking €550,000 sits €230,058 (41.8%) above — overpriced versus fair value.
Asking €550,000 versus the estrada de Albufeira S / N D area baseline of €288,230 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 78). 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.
estrada de Albufeira S / N D
Area baseline €288,230 + condition +€5,195 + location +€26,517 = modelled fair value of €319,942 (€3,368/m²), a €230,058 (41.8%) gap versus the €550,000 asking price.
Short-term vacation rental The property is overpriced at €550,000 compared to a fair value of €319,942, representing a significant gap of 41.8%. At a lengthy gross yield of 2.7%, it is likely to struggle to attract the necessary rental rates to compensate for the high initial investment. Buy-and-hold Given the current pricing, this property may not provide satisfactory long-term gains, as it is valued significantly above its fair value. With an average condition rating of 79/100 and a yield of only 2.7%, it could underperform against other investment options over time. Family rental The current asking price means that the property may not be a competitive family rental option, overshadowed by its higher valuation compared to fair market rates. While the neighborhood has decent qualities, the 41.8% gap suggests that potential returns could be limited, making it less appealing to families seeking affordable housing.
Economic Vulnerability The property faces potential income instability due to its economic stability score of 65/100, indicating susceptibility to economic downturns that could impact tenant demand.
