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 115 m², built in 2003, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property boasts expansive balconies with southern exposure, ensuring abundant natural light and a welcoming outdoor space ideal for relaxation and entertainment.
The valuation. The asking price of €450,000 is significantly above the fair value of €377,458, representing an overprice of €72,542 (16.1%). This discrepancy suggests that the property is not a sound investment at the current listing. Buy-to-flip angle. With a focus on resale, the strategy would involve capitalizing on renovations that enhance the property’s appeal, targeting a listing price that surpasses the current asking amount. Flipping for a profit can be challenging due to the initial overpricing. Buy-to-let angle. The estimated gross rental yield of 3.7% (approximately €1,388/month) positions the property as a potential long-term rental. Short-term vacation rentals may also leverage the tourist appeal of the Algarve region, enhancing income prospects.
Fair value modelled at €377,458 from the area baseline, adjusted for condition and location. Asking €450,000 sits €72,542 (16.1%) above — overpriced versus fair value.
Asking €450,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €399,740 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 70 · Materials 75 · Room dimensions 77). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €399,740 + condition -€2,156 + location +€30,704 = modelled fair value of €377,458 (€3,282/m²), a €72,542 (16.1%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 03254d | Subject | €450,000 | €3,913 | — | 70 | 72 |
| rua do Pinhal | Active | €295,000 | €4,097 | 4.7% | 70 | 71 |
| avenida Sa Carneiro | Active | €255,000 | €4,048 | 3.4% | 70 | 72 |
| Albufeira e Olhos de Água · 4a7d65 | Active | €260,000 | €4,727 | 20.8% | 72 | 75 |
| rua Manuel José de Paiva | Active | €375,000 | €3,000 | 23.3% | 72 | 67 |
| Median comp | €277,500 | €4,073 | 4.1% | 71 | 72 |
Short-term vacation rental Given the property's gross yield of 3.7% and the attractive location within the Algarve tourist region, the investment does not capitalize adequately on potential tourist demand. However, with a 16.1% discrepancy from fair value, this property remains overpriced for short-term rental prospects. Long-term rental Although the apartment is situated in an area with good amenities and tenant quality, the 3.7% yield suggests that long-term rental returns would be relatively low compared to other investment opportunities. Coupled with its overpriced status, the property may not generate satisfactory cash flow for long-term rental strategies. Buy-and-hold Investing in this property as a buy-and-hold strategy appears less favorable, given its condition score of 74/100 and the overpriced listing of €450,000. The ongoing costs and potential depreciation, combined with the 16.1% gap from fair value, could diminish overall returns over the investment horizon.
Economic vulnerability due to instability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could impact tenant income and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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