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, 3-bathroom penthouse of 213 m², built in 2006, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The penthouse boasts over 60m² of private terraces with a barbecue area, ideal for enjoying the Algarve lifestyle and entertaining guests in a tranquil setting.
The valuation. The asking price of €825,000 is significantly above its fair value of €722,237, representing a premium of €102,763 (12.5%). This property is best described as overpriced based on the current market conditions.
Fair value modelled at €722,237 from the area baseline, adjusted for condition and location. Asking €825,000 sits €102,763 (12.5%) above — overpriced versus fair value.
Asking €825,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €740,388 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 78 · Amenities 75 · Economic 65 · Tenant Quality 62). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €740,388 + condition +€24,295 + location +€51,699 = modelled fair value of €722,237 (€3,391/m²), a €102,763 (12.5%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 4d469a | Subject | €825,000 | €3,873 | — | 80 | 70 |
| rua António Silva, 99 | Active | €350,000 | €2,692 | 30.5% | 80 | 75 |
| Albufeira e Olhos de Água · 03254d | Active | €450,000 | €3,913 | 1.0% | 70 | 72 |
| Albufeira e Olhos de Água · 6fbaa3 | Active | €535,000 | €2,524 | 34.8% | 76 | 71 |
| estrada de Albufeira S / N D | Active | €550,000 | €5,789 | 49.5% | 75 | 73 |
| Median comp | €492,500 | €3,303 | 14.7% | 76 | 73 |
Short-term vacation rental This property, priced at €825,000, is approximately 12.5% above its fair value of €722,237, which makes it a less attractive option for short-term vacation rentals in the Algarve's competitive market. With a gross yield of 0%, the investment does not align with typical returns expected from vacation rental properties in tourist hotspots. Long-term rental At €825,000, the penthouse exceeds the fair value by 12.5%, which diminishes its appeal for long-term rental prospects where profitability is key. Given the current condition rating of 82/100 and the neutral neighborhood rating of 70/100, the potential for consistent rental income appears limited. Buy-and-hold Despite the allure of the Algarve as a tourist destination, this penthouse is overpriced at €825,000, which is 12.5% above its fair value. The stagnant gross yield of 0% indicates that holding this property may not provide the financial returns typically expected from a buy-and-hold strategy in real estate markets. Not ideal for student housing Given its location in Albufeira and the property’s priciness at €825,000, it is not an optimal choice for student housing due to the mismatch in expected tenant quality and affordability. Market dynamics driven by tourism seasonality further diminish the viability of this property as a long-term accommodation solution for students. Not ideal for value-add renovation The current valuation of €825,000, 12.5% over fair value, discourages a value-add renovation approach since the potential return on improvement investments is not supported by the existing property metrics. Additionally, the overall condition rating of 82/100 suggests limited room for enhancement, further complicating the justification for renovation expenditures.
Economic Vulnerability The economic stability score of 65/100 suggests potential fluctuations in local market conditions, which may affect property value and rental income. Tenant Instability With a tenant stability score of 62/100, there is a heightened risk of tenant turnover, impacting continuous cash flow.
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