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, 3-bathroom penthouse of 126 m², built in 2006, energy rating C. Located on alameda License, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique rental flexibility: The penthouse's layout allows for privacy options, making it ideal for families or guests, alongside an excellent rental history with annual returning guests.
The valuation. The asking price of €900,000 is significantly above the fair value of €639,545, indicating an overpriced property by €260,455 (40.7%). This suggests that investors may want to approach with caution regarding their valuation assumptions.
Fair value modelled at €639,545 from 6 comparable sales in the area. Asking €900,000 sits €260,455 (40.7%) above — overpriced versus fair value.
Asking €900,000 versus the alameda License area baseline of €547,939 (€4,349/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 €547,939, adjusted for condition and micro-location, gives a modelled fair value of €639,545 (€5,076/m²), a €260,455 (40.7%) gap versus the €900,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| alameda License | Subject | €900,000 | €7,143 | — | 72 | 61 |
| estrada de Albufeira S / N D | Active | €550,000 | €5,789 | 18.9% | 75 | 73 |
| Albufeira e Olhos de Água · dc1514 | Active | €795,000 | €4,321 | 39.5% | 78 | 70 |
| Albufeira e Olhos de Água · 4d469a | Active | €825,000 | €3,873 | 45.8% | 80 | 70 |
| Albufeira e Olhos de Água · 225a44 | Active | €530,000 | €4,818 | 32.5% | 70 | 65 |
| Median comp | €672,500 | €4,570 | 36.0% | 77 | 70 |
Short-term vacation rental The property is overpriced at €900,000 compared to its fair value of €639,545, leading to a significant 40.7% premium that undermines the investment potential. With a gross yield of only 1.8%, the financial return on a short-term vacation rental strategy may not justify the high entry cost. Buy-and-hold Investing in this penthouse as a buy-and-hold strategy may not be advisable, given its 40.7% premium over fair value and relatively low yield of 1.8%. The expected appreciation may not offset the initial overpricing, making this a less attractive long-term investment. Value-add renovation Despite the potential for value-add renovations, the property is currently overpriced at €900,000, 40.7% over its fair value. The condition score of 76/100 suggests room for improvement, but the initial investment remains disproportionately high relative to the anticipated uplift in value from renovation efforts.
Economic Vulnerability The property's economic stability score of 55 indicates a moderate risk of financial instability, which could lead to potential challenges in maintaining rental income. Tenant Instability With a tenant stability score of 58, there's an increased likelihood of tenant turnover, contributing to potential vacancies and fluctuations in cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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