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 apartment of 120 m² on the 2nd floor, built in 2026, energy rating A. Located on rua Fernando Pessoa, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property features two private terraces with unobstructed sea views, creating exclusive outdoor relaxation spaces that enhance the luxurious living experience in the Algarve.
The valuation. The asking price of €325,000 is just €949 (0.3%) above the fair value of €324,051. This price aligns closely with market expectations, reflecting a fair valuation. Buy-to-flip angle. The property offers potential for quick resale or wholesale, capitalizing on its high-quality finishes and desirable location. Short-term cosmetic upgrades may enhance its appeal to buyers looking for a modern coastal retreat. Buy-to-let angle. With an estimated gross yield of 4.7%, the property can generate around €1,273 per month in rental income. It is well-positioned for both short-term vacation rentals and long-term leases, appealing to different tenant markets.
Fair value modelled at €324,051 from 6 comparable sales in the area. Asking €325,000 sits €949 (0.3%) above — overpriced versus fair value.
Asking €325,000 versus the rua Fernando Pessoa area baseline of €223,988 (€1,867/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 €223,988, adjusted for condition and micro-location, gives a modelled fair value of €324,051 (€2,700/m²), a €949 (0.3%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Fernando Pessoa | Subject | €325,000 | €2,708 | — | 75 | 72 |
| rua do Município | Active | €540,000 | €2,687 | 0.8% | 80 | 70 |
| Albufeira e Olhos de Água · 99f1b3 | Active | €475,000 | €2,714 | 0.2% | 75 | 72 |
| largo das Ilhas | Active | €549,000 | €4,037 | 49.0% | 74 | 76 |
| Albufeira e Olhos de Água · 001855 | Active | €655,000 | €3,722 | 37.4% | 78 | 65 |
| Median comp | €544,500 | €3,218 | 18.8% | 77 | 71 |
Short-term vacation rental The property, at a gross yield of 4.7%, is well-suited for short-term vacation rentals, capitalizing on the tourist appeal of Albufeira. Its location in a safe, family-oriented coastal area supports consistent demand during peak seasons, although the proximity to amenities may influence rental performance slightly. Buy-and-hold With a fair value alignment at 0.3% from the listing price, this property reflects a stable investment for buy-and-hold strategies, but it may not produce significant appreciation over time. Investors should anticipate nominal increases in value, given economic conditions and average school quality impacting tenant quality in the small tourist town. Long-term rental The unit's current fair valuation supports the viability of long-term rental opportunities, yielding a respectable 4.7%. However, the average neighbourhood qualities imply that while tenant demand is expected to be steady, potential rental growth may be limited due to location dynamics.
Economic Sensitivity Risk Due to an economic stability score of 65/100, there is a heightened risk of economic downturns adversely affecting the rental income and financial viability of the property.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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