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.
0-bedroom, 1-bathroom studio of 40 m², built in 1970, energy rating E. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This studio features a private terrace oriented South and East, providing ample natural light and outdoor space for relaxation, enhancing its appeal as a coastal retreat.
The valuation. The asking price of €215,000 significantly exceeds the fair value of €126,381, presenting a discrepancy of €88,619 (41.2%). This property is thus considered overpriced. Buy-to-flip angle. With strategic renovations and upgrades to basic finishes, one could enhance the property’s appeal for a profitable resale in the active tourism market. Aiming for a resale price higher than €215,000 could yield substantial profits. Buy-to-let angle. Potential monthly rental income is approximately €663, leading to a gross yield of 3.7%. Given the tourist-focused area, short-term vacation rentals could generate higher returns during peak seasons.
Fair value modelled at €126,381 from the area baseline, adjusted for condition and location. Asking €215,000 sits €88,619 (41.2%) above — overpriced versus fair value.
Asking €215,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €139,040 (€3,476/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 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €139,040 + condition -€4,688 + location +€9,709 = modelled fair value of €126,381 (€3,160/m²), a €88,619 (41.2%) gap versus the €215,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · b7c21e | Subject | €215,000 | €5,375 | — | 70 | 70 |
| Albufeira e Olhos de Água · dee640 | Active | €185,000 | €9,250 | 72.1% | — | 74 |
| Albufeira e Olhos de Água · dee425 | Active | €207,500 | €5,461 | 1.6% | — | 72 |
| Albufeira e Olhos de Água · dbd4b3 | Active | €325,000 | €4,851 | 9.8% | 72 | 71 |
| praceta Pinhal, 37 | Active | €620,000 | €4,806 | 10.6% | 75 | 80 |
| Median comp | €266,250 | €5,156 | 4.1% | 74 | 73 |
Short-term vacation rental Due to its location in a tourist-focused area with high seasonal demand, the 0-bed studio presents a potential for short-term vacation rental income; however, the asking price of €215,000 significantly exceeds the fair value of €126,381, indicating a premium that is difficult to justify. The gross yield of 3.7% is unattractive compared to other investment opportunities, and the pricing may limit profitability in this competitive market. Long-term rental While the property may seem attractive for long-term rental due to the neighborhood's amenities and tourism appeal, the gap between the listing price of €215,000 and the fair value of €126,381 suggests that the investment is overpriced. Additionally, the 3.7% gross yield does not sufficiently compensate for the high capital outlay, making it a suboptimal choice for long-term rental income. Buy-and-hold The prospect of holding this 0-bed studio for long-term appreciation is compromised by its current pricing, as the €215,000 listing is substantially above the fair value of €126,381; this overpricing limits potential future returns. Given the limited local employment diversification and a yield of only 3.7%, the investment does not align with sound buy-and-hold strategy principles in this market.
Economic and Tenant Instability The property faces potential rental income volatility due to a combined economic stability score of 65/100 and tenant stability score of 60/100, indicating above-average risk.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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