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 87 m², built in 1989, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features a spacious terrace with a built-in barbecue area, ideal for outdoor entertaining, and benefits from recently updated plumbing and electrical systems.
The valuation. The asking price of €227,500 sits €42,350 (18.6%) below its fair value of €269,850, making it an attractive opportunity for potential buyers. This indicates that the property is underpriced. Buy-to-flip angle. A short-term vacation rental strategy could capitalize on the location’s tourism appeal, with potential for significant appreciation. Renovations may enhance resale price beyond current fair value. Buy-to-let angle. With an estimated rental income of €1,156 per month, this property offers a gross yield of 6.1%, making it a solid buy-and-hold investment in a tourist-centric market.
Fair value modelled at €269,850 from the area baseline, adjusted for condition and location. Asking €227,500 sits €42,350 (18.6%) below — the upside to fair value.
Asking €227,500 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €302,412 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 64/100 (Condition 65 · Materials 62 · Room dimensions 67). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €302,412 + condition -€15,225 + location +€21,117 = modelled fair value of €269,850 (€3,102/m²), a €42,350 (18.6%) gap versus the €227,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · be92d0 | Subject | €227,500 | €2,615 | — | 65 | 70 |
| rua do Município, 31 | Active | €190,000 | €3,654 | 39.7% | 65 | 71 |
| rua do Município | Active | €210,000 | €3,818 | 46.0% | — | 71 |
| rua das Telecomunicações, 25 | Active | €275,000 | €3,090 | 18.2% | 70 | 75 |
| rua de Dunfermline | Active | €330,000 | €2,946 | 12.7% | 71 | 64 |
| Median comp | €242,500 | €3,372 | 29.0% | 70 | 71 |
Short-term vacation rental The property is well-positioned to capitalize on the thriving tourism market in Albufeira, making it a strong candidate for short-term vacation rentals with a gross yield of 6.1%. Given that the listing price is substantially lower than the fair market value, it presents an attractive entry point for investors looking to tap into the vacation rental demand. Buy-and-hold As a buy-and-hold investment, this property in a desirable coastal location offers long-term appreciation potential supported by its fair value assessment of €269,850, indicating room for growth. The 6.1% gross yield further enhances its appeal for investors seeking consistent rental income over time. Value-add renovation With a current condition score of 64/100, there is ample opportunity for improvement through value-add renovations that can increase both the property’s rental income and overall value. The disparity between the listing and fair value suggests that strategic enhancements could realize significant returns for the investor. Not ideal for student housing This property type and location are not conducive to the student housing market due to its appeal as a coastal vacation spot. Although there may be rental demand, the short-term vacation market far outstrips the potential for stable income from student tenants. Not ideal for luxury market The property’s features do not align with the expectations of high-end luxury tenants, as it is better suited for more transient vacationers. The listing price and condition suggest a market position that caters to budget-conscious travelers rather than the luxury segment. Not ideal for family rental Given the one-bedroom layout, this property is not designed to meet the needs of families seeking longer-term accommodation. The neighborhood dynamics indicate a preference for short-term visitors, making family rentals an unsuitable strategy.
Economic risk The economic stability score of 55/100 indicates potential volatility in the local market, which could affect future 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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