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 86 m², energy rating B. Located on rua José Fontana, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The apartment's dual balcony orientation maximizes natural light and offers outdoor connectivity, while the equipped local accommodation license enhances its investment potential.
The valuation. The asking price of €395,000 is significantly above the fair value of €283,679, representing an overpricing of €111,321 (28.2%). This suggests that potential buyers should approach with caution.
Fair value modelled at €283,679 from the area baseline, adjusted for condition and location. Asking €395,000 sits €111,321 (28.2%) above — overpriced versus fair value.
Asking €395,000 versus the rua José Fontana area baseline of €298,936 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 75 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua José Fontana
Area baseline €298,936 + condition +€1,881 + location +€20,874 = modelled fair value of €283,679 (€3,299/m²), a €111,321 (28.2%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua José Fontana | Subject | €395,000 | €4,593 | — | 75 | 70 |
| rua dos Ibíscos | Active | €390,000 | €4,875 | 6.1% | 80 | 73 |
| Albufeira e Olhos de Água · dee3af | Active | €389,990 | €3,645 | 20.6% | 70 | 65 |
| avenida Sá Carneiro | Active | €290,000 | €4,462 | 2.9% | 74 | 64 |
| Albufeira e Olhos de Água · 9567b4 | Active | €350,000 | €4,667 | 1.6% | 80 | 76 |
| Median comp | €369,995 | €4,565 | 0.6% | 77 | 69 |
Short-term vacation rental The property in Albufeira e Olhos de Água, priced at €395,000, shows a substantial gap of 28.2% compared to its fair value of €283,679, indicating it is overpriced. Given its 3% gross yield and the popularity of the Algarve for tourists, this investment may struggle to justify the high initial cost despite the location's appeal. Long-term rental At €395,000, the property significantly exceeds its fair value by 28.2%, categorizing it as overpriced in the current market. While the mild seasonality in tourist influx supports demand for rentals, the 3% yield does not adequately compensate for the inflated purchase price. Buy-and-hold The listing price of €395,000, which is 28.2% over the fair value of €283,679, reflects that the property is overpriced for a buy-and-hold strategy. This strategy would rely on long-term appreciation, but the current price diminishes potential returns and increases investment risk.
Economic Instability Risk The economic stability score of 65/100 suggests a moderate risk of fluctuating market conditions affecting rental income.
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