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.
3-bedroom, 2-bathroom apartment of 146 m² on the 1st floor, built in 2022, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property features a large terrace with a jacuzzi, ideal for outdoor dining and enjoying sea views, enhancing the Algarve lifestyle experience.
The valuation. The asking price of €1,750,000 is significantly above the fair value of €700,987, representing a premium of €1,049,013 or 149.6%. This property is clearly overpriced based on comparative analysis.
Fair value modelled at €700,987 from 6 comparable sales in the area. Asking €1,750,000 sits €1,049,013 (149.6%) above — overpriced versus fair value.
Asking €1,750,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €554,488 (€3,798/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 is above the parish average, lifting 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 €554,488, adjusted for condition and micro-location, gives a modelled fair value of €700,987 (€4,801/m²), a €1,049,013 (149.6%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · b32a1d | Subject | €1,750,000 | €11,986 | — | 90 | 80 |
| caminho do Raposo S / N | Active | €895,000 | €5,144 | 57.1% | 85 | 80 |
| rua José Fontana | Active | €395,000 | €4,593 | 61.7% | 75 | 70 |
| rua das Alfarrobeiras, 158 | Active | €385,000 | €4,936 | 58.8% | 75 | 66 |
| Albufeira e Olhos de Água · 9567b4 | Active | €350,000 | €4,667 | 61.1% | 80 | 76 |
| Median comp | €390,000 | €4,802 | 59.9% | 78 | 73 |
Short-term vacation rental The property, priced at €1,750,000, is significantly above its fair value of €700,987, indicating it is overpriced for the potential short-term rental income of 1.2% gross yield. Given the seasonal nature of tourism in the Algarve, this investment does not align with the expected returns. Buy-and-hold While the property is in good condition with a rating of 88/100, the substantial pricing gap of 149.6% above fair value suggests an ongoing investment in this buy-and-hold strategy would yield poor returns. The high entry cost could hinder long-term profitability when considering the current rental market dynamics in the area. Family rental At €1,750,000, the apartment presents an unrealistic investment for a family rental due to the gap from fair value and a low gross yield of 1.2%. The neighborhood’s quality rating of 80/100 may attract families, but the purchase price remains excessively inflated compared to realistic rental income opportunities.
Economic Impact Risk With an economic stability score of 75/100, there is a potential risk that local economic fluctuations could adversely affect rental income, impacting overall investment returns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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