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 51 m², energy rating C. Located on estrada de Santa Eulália, 3, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment includes a private balcony with ocean views and is situated within walking distance to popular local attractions and sandy beaches.
The valuation. The asking price of €265,000 is significantly above the fair value of €165,410, placing the property at €99,590 over the recommended price, or 37.6% overpriced. This represents a poor investment in terms of value.
Fair value modelled at €165,410 from the area baseline, adjusted for condition and location. Asking €265,000 sits €99,590 (37.6%) above — overpriced versus fair value.
Asking €265,000 versus the estrada de Santa Eulália, 3 area baseline of €177,276 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 80 · Amenities 65 · Economic 60 · Tenant Quality 50). Strong amenities and housing-market momentum support a premium to baseline.
estrada de Santa Eulália, 3
Area baseline €177,276 + condition +€2,630 + location +€8,046 = modelled fair value of €165,410 (€3,243/m²), a €99,590 (37.6%) gap versus the €265,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de Santa Eulália, 3 | Subject | €265,000 | €5,196 | — | 75 | 63 |
| Albufeira e Olhos de Água · 1e63fb | Active | €890,000 | €7,739 | 48.9% | 74 | 75 |
| avenida da Liberdade, 117 | Active | €295,000 | €6,277 | 20.8% | 80 | 63 |
| estrada de Albufeira S / N D | Active | €550,000 | €5,789 | 11.4% | 75 | 73 |
| rua Samora Barros | Active | €350,000 | €7,609 | 46.4% | 85 | 76 |
| Median comp | €450,000 | €6,943 | 33.6% | 78 | 74 |
Short-term vacation rental The property in Albufeira e Olhos de Água is overpriced at €265,000, with a fair value estimated at only €165,410, creating a significant 37.6% gap. Although the neighborhood boasts strong tourism, the gross yield of 3.7% does not justify this high entry price. Buy-and-hold Investing in this apartment as a buy-and-hold strategy appears unwise given that it is positioned 37.6% above fair market value at €265,000. The combination of a 3.7% yield and mediocre neighborhood score of 63/100 indicates that long-term appreciation may not compensate for the current overvaluation. Long-term rental The current pricing of €265,000 for this property suggests an overpriced scenario, especially with a gross yield of only 3.7% and a fair value of €165,410. A long-term rental strategy is unlikely to provide satisfactory returns in a market where the property value exceeds realistic price benchmarks. Not ideal for: Student housing, Luxury market Given the deterioration in rental yields and the current pricing dynamics, this apartment is not suitable for student housing or the luxury market segments. The neighborhood’s average ratings further reinforce that the property does not align with the expectations of these demographic groups.
Economic and Tenant Instability Risk The property’s economic stability score of 60/100 and tenant stability score of 50/100 indicate a high potential for fluctuating rental income and turnover, posing a risk to long-term investment returns.
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