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, 1-bathroom house of 118 m², energy rating C. Located on estrada das Sesmarias, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property boasts a private terrace with pool views, providing an ideal outdoor space for relaxation and entertaining, along with proximity to the stunning beaches of the Algarve.
The valuation. The asking price of €345,000 is €48,248 (14.0%) below the fair value of €393,248, indicating that the property is underpriced. This presents a favorable opportunity for potential investors. Buy-to-flip angle. The resale strategy focuses on optimizing renovations, enhancing the property's appeal before flipping it at a higher price point in the competitive Albufeira market. Buy-to-let angle. The rental income strategy aims for a gross yield of 5.1%, generating approximately €1,466 per month from short-term vacation rentals, leveraging the area's tourism appeal.
Fair value modelled at €393,248 from the area baseline, adjusted for condition and location. Asking €345,000 sits €48,248 (14.0%) below — the upside to fair value.
Asking €345,000 versus the estrada das Sesmarias area baseline of €410,168 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 70 · Materials 80 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
estrada das Sesmarias
Area baseline €410,168 + condition +€5,162 + location +€30,073 = modelled fair value of €393,248 (€3,333/m²), a €48,248 (14.0%) gap versus the €345,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada das Sesmarias | Subject | €345,000 | €2,924 | — | 70 | 71 |
| estrada das Sesmarias, 1 | Active | €349,000 | €4,205 | 43.8% | 65 | 70 |
| Albufeira e Olhos de Água · 96c6cd | Active | €880,000 | €4,632 | 58.4% | 73 | 70 |
| Albufeira e Olhos de Água · 1e66a5 | Active | €385,000 | €5,000 | 71.0% | 75 | 70 |
| Guia · 735628 | Active | €475,000 | €5,108 | 74.7% | 80 | 73 |
| Median comp | €430,000 | €4,816 | 64.7% | 74 | 70 |
Short-term vacation rental This property is positioned well for short-term vacation rentals, given its proximity to the Algarve coast, which enhances its tourism appeal. With a fair value of €393,248 and a listing price of €345,000, the rental yield of 5.1% makes it an attractive option for investors looking for high turnover rental income. Long-term rental The current value gap of 14.0% presents a favorable scenario for long-term rental strategies, especially with a condition rating of 78/100 that suggests the property is well-maintained. The neighbourhood score of 71/100 indicates a decent quality of tenants, ensuring stable rental income. Buy-and-hold Investing in this property for a buy-and-hold strategy is viable, particularly due to its underpriced status relative to the fair value, which supports long-term appreciation potential. The combination of a solid rental yield and a location with continual tourist interest features a promising outlook for capital growth over time.
Economic vulnerability With an economic stability score of 65/100, there is a heightened risk of economic downturns impacting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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