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 house of 50 m², energy rating C. Located on rua da Igreja Velha, 40, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property includes a rooftop terrace with scenic views, enhancing both leisure and potential rental demand in a historic area of Albufeira e Olhos de Água.
The valuation. The asking price of €289,000 significantly exceeds the fair value of €166,456 by €122,544 (42.4%). This property is clearly overpriced in the current market.
Fair value modelled at €166,456 from the area baseline, adjusted for condition and location. Asking €289,000 sits €122,544 (42.4%) above — overpriced versus fair value.
Asking €289,000 versus the rua da Igreja Velha, 40 area baseline of €173,800 (€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 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua da Igreja Velha, 40
Area baseline €173,800 + condition +€1,406 + location +€13,350 = modelled fair value of €166,456 (€3,329/m²), a €122,544 (42.4%) gap versus the €289,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Igreja Velha, 40 | Subject | €289,000 | €5,780 | — | 75 | 72 |
| Albufeira e Olhos de Água · f360a1 | Active | €450,000 | €5,556 | 3.9% | 75 | 74 |
| Albufeira e Olhos de Água · 6ebb41 | Active | €980,000 | €5,185 | 10.3% | — | 67 |
| Albufeira e Olhos de Água · 1e66a5 | Active | €385,000 | €5,000 | 13.5% | 75 | 70 |
| estrada das Sesmarias, 1 | Active | €349,000 | €4,205 | 27.3% | 65 | 70 |
| Median comp | €417,500 | €5,093 | 11.9% | 75 | 70 |
Long-term rental Despite being located in a popular tourist area, the property's listing price is significantly above its fair value, making it a questionable long-term rental investment with a less favorable yield of 3.6%. The high gap of 42.4% from fair value suggests that potential rental income may not justify the investment. Short-term vacation rental While the Algarve is known for strong seasonal demand, the property’s price of €289,000 does not align with its market value of €166,456, indicating it is priced above what vacation rental returns would justify. Given the 3.6% yield and the significant gap from fair value, this property presents a risk for short-term rental profitability. Buy-and-hold The current valuation of €289,000 suggests that the property, despite being in a desirable tourist area, is overpriced and may hinder long-term capital appreciation. The 42.4% premium over fair value raises concerns about the sustainability of returns, making it a less attractive buy-and-hold opportunity.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of fluctuations in local market conditions that could affect property value and 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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