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, 2-bathroom house of 65 m², energy rating E. Located on caminho do Pontão, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: This property’s en-suite bedroom includes a private balcony, enhancing its appeal with added outdoor space for relaxation and enjoying the surrounding tranquility. Additional Context: The exclusive pool and well-maintained gardens offer an idyllic setting for social gatherings and leisure activities.
The valuation. The asking price of €325,000 is 8.2% below the fair value of €354,078, positioning this property accurately at a value that suggests it is fairly priced within the market context. Buy-to-flip angle. A resale strategy targeting short-term appreciation is feasible, as renovations could enhance the visual appeal and modernize finishes, potentially increasing resale value at a favorable margin. Buy-to-let angle. With an estimated gross yield of 4.2%, the property offers a solid rental income strategy, comfortably achieving approximately €1,138 per month, ideal for capitalizing on the thriving tourist market in the Algarve.
Fair value modelled at €354,078 from 6 comparable sales in the area. Asking €325,000 sits €29,078 (8.2%) below — the upside to fair value.
Asking €325,000 versus the caminho do Pontão area baseline of €350,892 (€5,398/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 50/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €350,892, adjusted for condition and micro-location, gives a modelled fair value of €354,078 (€5,447/m²), a €29,078 (8.2%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho do Pontão | Subject | €325,000 | €5,000 | — | 55 | 72 |
| estrada de Albufeira | Active | €899,500 | €5,025 | 0.5% | 72 | 71 |
| Albufeira e Olhos de Água · 82c645 | Active | €4,300,000 | €19,283 | 285.7% | — | 71 |
| rua Quinta da Balaia, 808A | Active | €450,000 | €4,327 | 13.5% | 76 | 73 |
| Albufeira e Olhos de Água · 99f3f3 | Active | €1,080,000 | €9,153 | 83.1% | — | 73 |
| Median comp | €989,750 | €7,089 | 41.8% | 74 | 72 |
Long-term rental The property in Albufeira e Olhos de Água presents a fair yield of 4.2%, indicating moderate annual returns for long-term investment. Given the property's condition of 50/100 and the stable tenant quality in the area driven by tourism, it may require additional investment to maximize its return potential. Short-term vacation rental As a property located in a prime tourist destination, this house could benefit from the strong demand for short-term vacation rentals; however, its fair valuation suggests that owners may face challenges in achieving substantial profit margins. The neighborhood's score of 72/100 indicates a decent appeal, but the competition in Albufeira e Olhos de Água may limit revenue growth opportunities. Buy-and-hold Investing for the long term in this property could yield steady returns, yet the current fair valuation indicates that growth may be limited compared to other options in the market. The stability of the local economy and the pleasant living conditions in the neighborhood support holding the investment, but it may not prove exceptionally profitable as property values in the area may grow at a moderate pace.
Economic Volatility Risk The economic stability score of 65/100 indicates a moderate risk of economic fluctuations that could impact 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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