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.
1-bedroom, 1-bathroom apartment of 75 m², built in 2003, energy rating E. Located on urbanização Salgados, Guia parish, Albufeira municipality, Faro district. This apartment features a spacious balcony with custom color accents that enhance its charm and provides an inviting outdoor space for relaxation.
The valuation. The asking price of €318,000 is significantly above fair value at €239,840, representing an overpricing of €78,160 (24.6%). This valuation indicates the property is not a strategic buy at its current price point.
Fair value modelled at €239,840 from the area baseline, adjusted for condition and location. Asking €318,000 sits €78,160 (24.6%) above — overpriced versus fair value.
Asking €318,000 versus the urbanização Salgados area baseline of €267,825 (€3,571/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 65 · Room dimensions 71). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Salgados
Area baseline €267,825 + condition -€7,734 + location +€20,024 = modelled fair value of €239,840 (€3,198/m²), a €78,160 (24.6%) gap versus the €318,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Salgados | Subject | €318,000 | €4,240 | — | 70 | 72 |
| Albufeira e Olhos de Água · 6d5314 | Active | €235,000 | €4,196 | 1.0% | — | 72 |
| Guia · 6fb7da | Active | €350,000 | €3,723 | 12.2% | — | 66 |
| estrada das Sesmarias | Active | €299,000 | €5,436 | 28.2% | 76 | 80 |
| Guia · 41ffb6 | Active | €340,000 | €6,538 | 54.2% | 65 | 70 |
| Median comp | €319,500 | €4,816 | 13.6% | 71 | 71 |
Short-term vacation rental The property is overpriced at €318,000, compared to a fair value of €239,840, presenting a significant gap of 24.6%, which diminishes its attractiveness to potential investors looking for a profitable vacation rental. With a gross rental yield of only 3.4%, the investment does not align with typical return expectations in the seasonal Algarve market. Long-term rental Given the listing price of €318,000, the property exceeds fair market value by 24.6%, making it less compelling for long-term rental investment despite a decent condition rating of 68/100. The yield of 3.4% does not provide sufficient incentive for an investment that is already overpriced, indicating a more challenging cash flow scenario for tenants. Buy-and-hold With the current pricing at €318,000, this buy-and-hold strategy is undermined by the significant gap of 24.6% from fair value, which places the property in a less favorable position within the market. Holding onto a property that is overpriced at this level may hinder capital appreciation and long-term investment viability in the area.
Economic vulnerability With an economic stability score of 65/100, there is a risk of fluctuations in the local market impacting property values negatively, which could affect rental income and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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