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 69 m², built in 2011, energy rating A. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment includes access to extensive resort amenities such as three pools, a gym, and spa services, promoting an active lifestyle within a secure environment.
The valuation. The asking price of €320,000 exceeds the fair value of €238,963 by €81,037, or 25.3%. This property is therefore deemed overpriced, presenting a financial risk for potential investors. Buy-to-flip angle. With strategic renovations, the property can be upgraded and listed for resale in the competitive Algarve market, aiming for a higher profit margin. This flip strategy will target both local buyers and foreign investors seeking vacation homes. Buy-to-let angle. The estimated rental income of €853 per month yields a gross return of 3.2%. Short-term rentals can capitalize on the area's tourism, increasing profitability during peak seasons and offsetting the initial investment costs.
Fair value modelled at €238,963 from the area baseline, adjusted for condition and location. Asking €320,000 sits €81,037 (25.3%) above — overpriced versus fair value.
Asking €320,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €239,844 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 83 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 77/100 (Housing Market 80 · Amenities 85 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €239,844 + condition +€7,008 + location +€22,609 = modelled fair value of €238,963 (€3,463/m²), a €81,037 (25.3%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 9388cf | Subject | €320,000 | €4,638 | — | 80 | 77 |
| Albufeira e Olhos de Água · 49b926 | Active | €420,000 | €6,364 | 37.2% | 76 | 72 |
| Albufeira e Olhos de Água · 9567b4 | Active | €350,000 | €4,667 | 0.6% | 80 | 76 |
| rua das Alfarrobeiras, 158 | Active | €385,000 | €4,936 | 6.4% | 75 | 66 |
| rua Joaquim Magalhães, 19 | Active | €370,000 | €5,068 | 9.3% | 70 | 71 |
| Median comp | €377,500 | €5,002 | 7.9% | 76 | 72 |
Short-term vacation rental Despite its proximity to popular attractions in Albufeira, the 3.2% gross yield indicates that this property is not generating sufficient returns when compared to its overpriced listing. Additionally, the gap of 25.3% from fair value suggests a lack of market alignment that could deter potential renters. Buy-and-hold With a fair value significantly lower than the purchase price, this property lacks the fundamentals necessary for a strategy focused on long-term appreciation. Investors may find that the limited growth prospects, exacerbated by its overpriced status, yield minimal benefits over time. Family rental While the neighborhood has decent ratings and low crime rates, the 25.3% gap from fair value indicates that this family rental opportunity is overpriced and may not attract long-term tenants. The reduced yield of 3.2% also suggests that rental returns may fail to justify the current investment size, leading to potential cash flow challenges.
Economic Vulnerability A score of 65/100 indicates that the area's economic stability may pose a risk, potentially leading to fluctuations in property values and rent 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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