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.
1-bedroom, 1-bathroom apartment of 58 m² on the 4th floor, built in 2000, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property offers direct access to two swimming pools and is located within walking distance of Oura Beach, enhancing its appeal for vacation rentals.
The valuation. The asking price of €375,000 sits significantly above the fair value of €292,253, indicating an overvaluation of €82,747 (28.3%). This suggests that potential buyers may encounter challenges justifying the investment. Buy-to-flip angle. A buy-to-flip strategy could leverage the apartment's potential for renovation to realize a higher resale price, but with the current condition rating of 68/100, significant investment may be needed for desired returns. Buy-to-let angle. With an estimated rental income of €781/month and a gross yield of 2.5%, a buy-and-hold strategy may suit long-term investors looking to capitalize on the property’s location in a tourist-driven area, despite seasonal fluctuations.
Fair value modelled at €292,253 from 6 comparable sales in the area. Asking €375,000 sits €82,747 (28.3%) above — overpriced versus fair value.
Asking €375,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €267,833 (€4,618/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 is below the parish average, reducing 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 €267,833, adjusted for condition and micro-location, gives a modelled fair value of €292,253 (€5,039/m²), a €82,747 (28.3%) gap versus the €375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 19f790 | Subject | €375,000 | €6,466 | — | 70 | 63 |
| Albufeira e Olhos de Água · 6a920d | Active | €385,000 | €5,203 | 19.5% | 70 | 73 |
| rua dos Pardais, 13 | Active | €299,000 | €4,672 | 27.7% | 70 | 73 |
| Albufeira e Olhos de Água · 82c749 | Active | €2,850,000 | €45,238 | 599.7% | 62 | 70 |
| jardim A4 | Active | €234,000 | €4,875 | 24.6% | 82 | 73 |
| Median comp | €342,000 | €5,039 | 22.1% | 70 | 73 |
Short-term vacation rental While the property is located in a prominent tourist destination, its gross yield of 2.5% is inadequate given the 28.3% gap from the fair value of €292,253, indicating it is overpriced. The seasonal fluctuations in the tourism-driven economy further exacerbate the investment risk in this strategy. Buy-and-hold The 1-bed apartment does not represent a sound buy-and-hold investment, as its fair value of €292,253 reveals a significant 28.3% overvaluation compared to the listing price of €375,000. The moderate condition score of 68/100 and neighborhood rating of 63/100 further reduce its potential for long-term appreciation. Family rental Investing in this property for family rental is not advisable, considering it is overpriced by 28.3% with a fair value at €292,253. Additionally, the combination of low gross yield at 2.5% and the neighborhood's average amenities diminishes its attractiveness as a family home.
Economic Vulnerability The property is at risk due to a low economic stability score of 50/100, indicating potential challenges in market conditions that may affect tenant demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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