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 house of 186 m², built in 1991, energy rating E. Located on beco das Papoilas S / N, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property boasts a rooftop terrace with a jacuzzi, offering stunning sunset views and an exceptional outdoor experience.
The valuation. The asking price of €559,000 is very close to the fair value of €562,854, only €3,854 (0.7%) below, indicating the property is fairly priced. Buy-to-flip angle. With a strong tourist market in the Algarve, a quick resale strategy could capitalize on vacation home demand after minor renovations. Buy-to-let angle. Aiming for a gross yield of 4.4%, the property can generate an estimated rental income of €2,050/month, making it an attractive buy-and-hold investment in a high-demand area.
Fair value modelled at €562,854 from 6 comparable sales in the area. Asking €559,000 sits €3,854 (0.7%) below — the upside to fair value.
Asking €559,000 versus the beco das Papoilas S / N area baseline of €390,276 (€2,098/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €390,276, adjusted for condition and micro-location, gives a modelled fair value of €562,854 (€3,026/m²), a €3,854 (0.7%) gap versus the €559,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco das Papoilas S / N | Subject | €559,000 | €3,005 | — | 80 | 65 |
| Albufeira e Olhos de Água · 00199e | Active | €825,000 | €3,173 | 5.6% | 74 | 72 |
| Albufeira e Olhos de Água · 25f562 | Active | €524,000 | €2,879 | 4.2% | 75 | 64 |
| Albufeira e Olhos de Água · 28b7df | Active | €590,000 | €3,471 | 15.5% | 75 | 72 |
| Albufeira e Olhos de Água · ba5b1b | Active | €525,000 | €1,981 | 34.1% | 75 | 73 |
| Median comp | €557,500 | €3,026 | 0.7% | 75 | 72 |
Short-term vacation rental The property’s location in Albufeira, a popular tourist destination, supports a gross yield of 4.4% from short-term rentals, capitalizing on strong visitor demand. However, with the current listing price aligning closely to its fair value, the investment offers limited upside potential for aggressive short-term rental objectives. Buy-and-hold With a fair value determined at €562,854 and an attractive 4.4% yield, this property serves as a reasonable buy-and-hold investment given the stable demand in the Algarve. Nevertheless, the limited growth potential relative to its price suggests that long-term capital appreciation may not meet expectations in a moderately valued market. Value-add renovation The property’s condition score of 82/100 indicates a well-maintained home, which may limit immediate opportunities for value-add renovations compared to homes in poorer condition. Given that the listing stands at a price very close to fair value, the potential return from any renovations would have to be carefully calculated against the current market dynamics for true benefit to be realized.
Economic Instability Risk The property's economic stability score of 55/100 indicates a moderate risk of fluctuations in revenue due to potential local economic downturns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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