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 68 m², built in 1995, energy rating C. Located on estrada de Santa Eulália, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment features easy and available parking in a central location, a rare advantage in such a vibrant area known for its nightlife and beach proximity.
The valuation. The asking price of €265,000 exceeds the fair value of €223,136 by €41,864 (15.8%), indicating that the property is overpriced. Buy-to-flip angle. With renovations estimated to enhance value, a resale strategy can capitalize on the Algarve's tourism appeal for a profitable turnaround. Buy-to-let angle. Projected rental income at €905/month offers a gross yield of 4.1%, making it a viable buy-and-hold investment in a desirable vacation rental market.
Fair value modelled at €223,136 from the area baseline, adjusted for condition and location. Asking €265,000 sits €41,864 (15.8%) above — overpriced versus fair value.
Asking €265,000 versus the estrada de Santa Eulália area baseline of €236,368 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 80 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
estrada de Santa Eulália
Area baseline €236,368 + condition +€319 + location +€16,505 = modelled fair value of €223,136 (€3,281/m²), a €41,864 (15.8%) gap versus the €265,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de Santa Eulália | Subject | €265,000 | €3,897 | — | 72 | 70 |
| Albufeira e Olhos de Água · 0016df | Active | €314,000 | €5,065 | 30.0% | 80 | 71 |
| Albufeira e Olhos de Água · bf27cf | Active | €369,000 | €4,920 | 26.2% | 72 | 71 |
| rua dos Bares | Active | €275,000 | €4,167 | 6.9% | 74 | 73 |
| estrada de Santa Eulália | Active | €300,000 | €4,688 | 20.3% | 70 | 70 |
| Median comp | €307,000 | €4,804 | 23.3% | 73 | 71 |
Short-term vacation rental Given the strong tourism appeal in the Algarve, there is a consistent demand for short-term vacation rentals; however, at €265,000, this 1-bed apartment is overpriced compared to its fair value of €223,136. With a gross yield of only 4.1%, potential returns may not justify the higher asking price. Buy-and-hold Investing in this property as a buy-and-hold asset is less appealing due to its current overpriced state, with a fair value gap of 15.8%. The combination of a decent condition rating of 75/100 and a gross yield of 4.1% underlines the need for a price correction before it becomes a viable longer-term hold. Family rental While family rentals can perform well in Albufeira, this particular 1-bed apartment is overpriced at €265,000, compared to a fair value of €223,136, limiting potential return on investment. The overall neighborhood rating of 70/100 suggests it could appeal to families, but the high entry price diminishes its attractiveness. Not ideal for: Student housing, Luxury market, Value-add renovation This property is not suitable for the student housing market due to its size and pricing, and the luxury market is not a fit given its condition and neighborhood rating. Additionally, the potential for value-add renovations is limited as the apartment is already in good condition at 75/100, yet still priced above its fair value.
Economic Dependence Risk: With both economic stability and tenant stability scores at 65/100, there is a significant risk that economic downturns could lead to higher vacancy rates and reduced rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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