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 96 m² on the 1st floor, built in 2005, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property boasts a private south-facing terrace, ideal for al fresco dining while enjoying unobstructed panoramic views of the Atlantic Ocean.
The valuation. The asking price of €845,000 is significantly above the fair value of €480,684, presenting an overvaluation of €364,316 (75.8%). This price discrepancy indicates a lack of market alignment. Buy-to-flip angle. A buy-to-flip strategy would likely involve renovations before reselling; however, the current marked asking price presents a significant hurdle to achieving a profitable resale. Buy-to-let angle. With a gross yield of 1.6%, generating an estimated monthly rental income of €1,127 may be feasible through short-term vacation rentals in the high-demand tourist area.
Fair value modelled at €480,684 from 6 comparable sales in the area. Asking €845,000 sits €364,316 (75.8%) above — overpriced versus fair value.
Asking €845,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €393,351 (€4,097/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €393,351, adjusted for condition and micro-location, gives a modelled fair value of €480,684 (€5,007/m²), a €364,316 (75.8%) gap versus the €845,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · ab71dc | Subject | €845,000 | €8,802 | — | 78 | 71 |
| estrada de Albufeira S / N D | Active | €550,000 | €5,789 | 34.2% | 75 | 73 |
| Albufeira e Olhos de Água · be946c | Active | €530,000 | €4,818 | 45.3% | 76 | 63 |
| estrada de Santa Eulália, 3 | Active | €265,000 | €5,196 | 41.0% | 75 | 63 |
| praceta Pinhal, 37 | Active | €620,000 | €4,806 | 45.4% | 75 | 80 |
| Median comp | €540,000 | €5,007 | 43.1% | 75 | 68 |
Short-term vacation rental The property is overpriced by 75.8% compared to its fair value, making it a less attractive option for short-term vacation rentals in the competitive Albufeira market. With a gross yield of only 1.6%, the investment potential is significantly limited, deterring potential investors seeking profitable rental opportunities. Family rental Given its 75.8% gap from fair value, this property is not a suitable family rental option despite its relatively high condition rating of 81/100. The price points to a challenging return on investment, with a gross yield of just 1.6%, making it less appealing for family-sized renters looking for value. Buy-and-hold This property, priced at €845,000 but valued at only €480,684, presents a capital appreciation outlook that is compromised by its significant overvaluation. The low yield of 1.6% suggests that holding this investment may yield insufficient income to justify the high acquisition cost, undermining long-term financial strategy.
Economic downturn risk With an economic stability score of 65/100, there is a potential risk of declining local economic conditions that could impact tenant retention 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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