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 80 m², built in 2010, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Property Highlights: This apartment includes access to luxurious amenities such as a children's water park and a full-service spa, enhancing its appeal as a premium vacation rental. Investment Note: Positioned in a high-demand rental market, it offers excellent potential for profitability.
The valuation. The asking price of €324,900 is substantially above the fair value of €259,158, resulting in an overprice of €65,742 (20.2%). This valuation indicates that potential investors should approach with caution. Buy-to-flip angle. Given the high asking price, a buy-to-flip strategy may be risky; any profit would rely on significant market appreciation. The current condition and modern finishes could attract buyers, but the market must support a higher selling price. Buy-to-let angle. The estimated gross yield of 4.3% suggests viable rental potential, equaling approximately €1,164 per month. Considering the area's tourist influence, leveraging a short-term vacation rental strategy may yield favorable returns despite seasonal fluctuations.
Fair value modelled at €259,158 from the area baseline, adjusted for condition and location. Asking €324,900 sits €65,742 (20.2%) above — overpriced versus fair value.
Asking €324,900 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €278,080 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 75 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 75 · Amenities 60 · 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 €278,080 + condition +€1,875 + location +€14,563 = modelled fair value of €259,158 (€3,239/m²), a €65,742 (20.2%) gap versus the €324,900 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 23f31f | Subject | €324,900 | €4,061 | — | 75 | 65 |
| herdade dos Salgados | Active | €424,000 | €4,371 | 7.6% | 78 | 71 |
| Ferreiras · dc14bd | Active | €320,000 | €3,765 | 7.3% | 70 | 76 |
| rua das Alfarrobeiras, 158 | Active | €385,000 | €4,936 | 21.5% | 75 | 66 |
| Albufeira e Olhos de Água · 49b926 | Active | €420,000 | €6,364 | 56.7% | 76 | 72 |
| Median comp | €402,500 | €4,654 | 14.6% | 76 | 72 |
Short-term vacation rental This property, with a gross yield of 4.3%, is currently overpriced at €324,900 compared to its fair value of €259,158, leading to a significant 20.2% premium. Given the seasonal nature of tourism in the Algarve, this apartment may struggle to provide consistent returns relative to its asking price. Buy-and-hold While Albufeira has a stable market due to its tourist influence, this 1-bed apartment is overpriced, making long-term capital appreciation uncertain. The lower condition score of 77/100 combined with the elevated price diminishes its attractiveness as a hold investment. Long-term rental Despite a moderate neighbourhood score of 65/100, the high price point for this property limits its potential as a long-term rental investment. With a gross yield of 4.3% and a valuation gap indicating overpricing, it may not deliver competitive returns for landlords in the current market climate.
Potential High Vacancy Risk Tenant stability is at 60/100, indicating a likelihood of higher turnover and potential vacancies that could strain cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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