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 penthouse of 200 m² on the 12th floor, built in 1987, energy rating D. Located on rua Fernão de Magalhães G, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The penthouse features a spacious terrace with a built-in barbecue, perfect for entertaining, and benefits from recent renovations that emphasize modern aesthetics and functionality. Location Advantage: Just steps away from iconic beaches and the historic center of Albufeira, it offers an ideal blend of urban convenience and coastal living.
The valuation. The asking price of €400,000 is significantly lower than the fair value of €514,117, indicating that the property is subpriced by €114,117 (22.2%). This presents an excellent opportunity for potential investors. Buy-to-flip angle. The strategy focuses on a quick resale, capitalizing on the property’s underpricing and sophisticated finishes. With the right renovations, the penthouse could attract higher bids from buyers looking for luxury in a tourist-centric locale. Buy-to-let angle. Given the estimated rental income of €1,500/month, this property yields a gross return of 4.5%. Its prime location in Albufeira ensures steady demand for short-term vacation rentals, enhancing long-term investment viability.
Fair value modelled at €514,117 from 6 comparable sales in the area. Asking €400,000 sits €114,117 (22.2%) below — the upside to fair value.
Asking €400,000 versus the rua Fernão de Magalhães G area baseline of €349,694 (€1,748/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 €349,694, adjusted for condition and micro-location, gives a modelled fair value of €514,117 (€2,571/m²), a €114,117 (22.2%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Fernão de Magalhães G | Subject | €400,000 | €2,000 | — | 78 | 65 |
| Albufeira e Olhos de Água · 6eb9d4 | Active | €350,000 | €1,786 | 10.7% | 68 | 67 |
| rua Fernão de Magalhães | Active | €449,000 | €2,212 | 10.6% | 78 | 68 |
| Albufeira e Olhos de Água · 65a70a | Active | €399,000 | €2,771 | 38.5% | 75 | 75 |
| Albufeira e Olhos de Água · 4a44ae | Active | €385,000 | €2,619 | 31.0% | 75 | 72 |
| Median comp | €392,000 | €2,416 | 20.8% | 75 | 70 |
Short-term vacation rental This property benefits from a high tourist activity in the Algarve region, making it suitable for short-term vacation rentals. With a fair value of €514,117, purchasing at €400,000 offers a 22.2% gap, enhancing the potential profit from tourist rental income given the gross yield of 4.5%. Buy-and-hold Given the steady demand for tourism in Albufeira, investing in this penthouse as a long-term rental can yield consistent returns while benefiting from property appreciation. The current price of €400,000, significantly below its fair value, indicates the potential for strong value growth over time. Value-add renovation This property, with a good condition rating of 79/100, presents opportunities for value-add renovations that could increase both rental income and market value. Investing in strategic improvements could further elevate its appeal within a tourism-focused market, especially given its fair value of €514,117, making the current listing price an attractive entry point. Not ideal for student housing The penthouse’s location and features are better suited for a tourist rental market rather than long-term student housing, which may not generate sufficient demand year-round. Higher seasonal fluctuations in occupancy rates are likely to jeopardize consistent income streams typical of student rentals. Not ideal for luxury market The property, while desirable, does not fit into the luxury market segment, where prices are typically higher and require additional amenities and exclusivity. Competing in this segment could result in prolonged vacancies and insufficient rental income. Not ideal for family rental The penthouse may not cater effectively to families, as it is geared towards short-term vacationers who prioritize amenities suited for fleeting stays. This focus on tourism over family-oriented features may limit its long-term rental appeal to family segments.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of economic downturns affecting tenant retention and 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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