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 129 m², built in 2017, energy rating F. Located on caminho do Pontão, 21, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This house includes a smart toilet with heated flooring in the bathroom, enhancing comfort and modern functionality in everyday living.
The valuation. The asking price of €595,000 is €51,622 (8.0%) below the fair value of €646,622, positioning this property as fairly priced in the current market context.
Fair value modelled at €646,622 from 6 comparable sales in the area. Asking €595,000 sits €51,622 (8.0%) below — the upside to fair value.
Asking €595,000 versus the caminho do Pontão, 21 area baseline of €549,980 (€4,263/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €549,980, adjusted for condition and micro-location, gives a modelled fair value of €646,622 (€5,013/m²), a €51,622 (8.0%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho do Pontão, 21 | Subject | €595,000 | €4,612 | — | 75 | 63 |
| estrada de Albufeira | Active | €899,500 | €5,025 | 8.9% | 72 | 71 |
| rua Quinta da Balaia, 808A | Active | €450,000 | €4,327 | 6.2% | 76 | 73 |
| Albufeira e Olhos de Água · 1e6205 | Active | €1,280,000 | €8,889 | 92.7% | 78 | 75 |
| via do Infante | Active | €547,000 | €3,647 | 20.9% | 75 | 79 |
| Median comp | €723,250 | €4,676 | 1.4% | 76 | 74 |
Short-term vacation rental The property is fairly priced at €595,000 compared to the fair value of €646,622, reflecting a manageable gap of 8.0%. With a gross yield of 2.8%, while not exceptionally high, it still captures the potential demand in a strong tourist-driven market like Albufeira. Buy-and-hold While the property is currently valued fairly, the modest gross yield of 2.8% suggests limited short-term income potential relative to the investment. However, the long-term appreciation in an area reliant on tourism could provide value over time. Value-add renovation With a condition rating of 79/100, the property presents an opportunity for enhancements that could improve both its appeal and rental income potential. Although currently fairly valued, strategic renovations could elevate it closer to the higher end of the market, aligning it with tourist demands in Albufeira. Not ideal for student housing The property's profile does not align with the needs of student housing, given the focus on the tourist market in Albufeira. While it is situated in a reasonably rated neighbourhood, the student demographic would likely seek accommodations more aligned with academic environments. Not ideal for luxury market This property does not fit the luxury market segment, as its fair valuation does not correspond to the high-end investments typically sought by affluent buyers. The combination of its current condition and yield suggests it operates within a more mainstream market rather than the luxury tier. Not ideal for long-term rental The property’s gross yield of 2.8% indicates it may not generate appealing returns for long-term rental purposes. Additionally, the reliance on tourism makes this an unsuitable choice for landlords seeking stable, long-term tenants.
Economic and Tenant Stability Risk The economic stability and tenant stability scores of 60/100 indicate a moderate risk of fluctuating demand and potential difficulties in securing consistent 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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