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 49 m² on the 1st floor, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This apartment includes a balcony accessible from the living area, providing outdoor space in a central location just minutes from the beach and nightlife.
The valuation. The asking price of €200,000 is significantly below the fair value of €234,198, presenting a potential profit opportunity of €34,198 (14.6%). Verdict: underpriced. Buy-to-flip angle. With effective renovations focusing on updating fixtures, the resale strategy could capitalize on the property’s desirable location, potentially elevating the market price significantly above acquisition costs. Buy-to-let angle. Aiming for a rental income of approximately €800 per month, this property can yield a gross return of 4.8%, making it appealing for long-term tenants amidst the popular Algarve tourist market.
Fair value modelled at €234,198 from 6 comparable sales in the area. Asking €200,000 sits €34,198 (14.6%) below — the upside to fair value.
Asking €200,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €226,927 (€4,631/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 54/100 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 €226,927, adjusted for condition and micro-location, gives a modelled fair value of €234,198 (€4,780/m²), a €34,198 (14.6%) gap versus the €200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 622996 | Subject | €200,000 | €4,082 | — | 50 | 74 |
| rua Mouzinho de Albuquerque, 5 | Active | €282,000 | €3,615 | 11.4% | 56 | 74 |
| Albufeira e Olhos de Água · de0b7a | Active | €370,000 | €5,286 | 29.5% | — | 76 |
| Albufeira e Olhos de Água · 0238c6 | Active | €185,000 | €4,302 | 5.4% | 54 | 71 |
| Albufeira e Olhos de Água · 001626 | Active | €270,000 | €4,909 | 20.3% | 68 | 74 |
| Median comp | €276,000 | €4,606 | 12.8% | 56 | 74 |
Short-term vacation rental This 1-bed apartment in Albufeira is well-positioned to capitalize on the region's popularity, showing a promising gross yield of 4.8%. With a fair value gap of 14.6%, it offers an attractive entry point for short-term rental investors seeking solid returns. Long-term rental Positioned in a neighbourhood with a solid tenant quality score of 74, this property can attract reliable tenants, ensuring consistent rental income. The current pricing reflects an opportunity for long-term rental investors to secure a property below the fair market value. Buy-and-hold Given its advantageous location and growth potential, this property serves as a strategic buy-and-hold investment, particularly as the Algarve region continues to thrive. Acquiring it at a price 14.6% lower than fair value enhances the investment's allure by offering strong capital appreciation potential. Not ideal for student housing The property’s characteristics do not align well with the requirements of student housing, given the targeted demographic and rental income volatility associated with that market segment. With a better fit for vacation or long-term rentals, this property is likely to yield more stable returns outside the student rental framework. Not ideal for industrial investments This residential property is not suited for industrial investments, as the zoning and characteristics cater solely to the residential market. Investing in industrial properties would be misaligned with the apartment’s potential and local regulatory context. Not ideal for urban commercial The nature of this property does not support urban commercial development, as its location and structure are designed for residential purposes. Engaging in urban commercial investments would divert focus from the property’s strengths in residential rental markets.
Economic Vulnerability The property has a moderately high economic stability score of 70/100, which indicates potential susceptibility to market fluctuations that could impact 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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