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, 1-bathroom apartment of 80 m² on the 1st floor, built in 1998, energy rating C. Located on rua do Cerro, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features a balcony with stunning sea and Old Town views, ideal for enjoying sunrise and sunset moments.
The valuation. The asking price of €465,000 is significantly higher than the fair value of €401,176, presenting an overvaluation of €63,824 (15.9%). This property does not represent a financially sound investment based on current market conditions.
Fair value modelled at €401,176 from 6 comparable sales in the area. Asking €465,000 sits €63,824 (15.9%) above — overpriced versus fair value.
Asking €465,000 versus the rua do Cerro area baseline of €341,222 (€4,265/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €341,222, adjusted for condition and micro-location, gives a modelled fair value of €401,176 (€5,015/m²), a €63,824 (15.9%) gap versus the €465,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Cerro | Subject | €465,000 | €5,813 | — | 72 | 70 |
| Albufeira e Olhos de Água · dee5ee | Active | €341,000 | €4,608 | 20.7% | 80 | 71 |
| rua das Telecomunicações, 25 | Active | €465,000 | €4,346 | 25.2% | 76 | 73 |
| Albufeira e Olhos de Água · 6a920d | Active | €385,000 | €5,203 | 10.5% | 70 | 73 |
| estrada de Santa Eulália, 3 | Active | €265,000 | €5,196 | 10.6% | 75 | 63 |
| Median comp | €363,000 | €4,902 | 15.7% | 76 | 72 |
Short-term vacation rental Given the high listing price of €465,000 against a fair value of €401,176, this property is not positioned favorably for short-term vacation rentals which typically require a more competitive entry price. With a gross yield of only 2.6% and a neighborhood score of 70/100, potential returns may be insufficient to justify the investment. Long-term rental The property's current valuation makes it unattractive for long-term rental investors, as the gap from fair value indicates a premium that is unlikely to be recouped through rental income. An estimated gross yield of 2.6% falls short of the market norm, suggesting that long-term rental investment in this asset would yield suboptimal results. Buy-and-hold Investing in this property as a buy-and-hold strategy is inadvisable, given its listing price substantially exceeds the fair value and its comparatively low condition score of 76/100. The 15.9% discrepancy from fair value suggests limited upside potential in a predominantly tourist-driven market, ultimately impacting long-term appreciation prospects.
Economic Vulnerability The economic stability score of 65 indicates potential susceptibility to downturns, which could negatively impact tenant demand and rental income.
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