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 studio of 55 m² on the 1st floor, built in 1989, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The studio includes a small room with natural light that can serve as an office or guest space, enhancing functionality in a compact layout.
The valuation. The asking price of €220,000 is slightly below the fair value of €226,112, giving a difference of €6,112 (2.7%). This positions the property as fairly valued in the current market.
Fair value modelled at €226,112 from 6 comparable sales in the area. Asking €220,000 sits €6,112 (2.7%) below — the upside to fair value.
Asking €220,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €219,684 (€3,994/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 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 €219,684, adjusted for condition and micro-location, gives a modelled fair value of €226,112 (€4,111/m²), a €6,112 (2.7%) gap versus the €220,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 15e3f9 | Subject | €220,000 | €4,000 | — | 60 | 61 |
| Albufeira e Olhos de Água · cfdeef | Active | €265,000 | €4,141 | 3.5% | 60 | 72 |
| Albufeira e Olhos de Água · 622996 | Active | €200,000 | €4,082 | 2.0% | 50 | 74 |
| Albufeira e Olhos de Água · 0238c6 | Active | €185,000 | €4,302 | 7.6% | 54 | 71 |
| rua Mouzinho de Albuquerque, 5 | Active | €282,000 | €3,615 | 9.6% | 56 | 74 |
| Median comp | €232,500 | €4,112 | 2.8% | 55 | 73 |
Short-term vacation rental The property presents a gross yield of 5%, which aligns well with the short-term rental market trends in the Algarve region, known for its tourism appeal. However, given its fair valuation, potential investors might not realize significant appreciation in the near term. Buy-and-hold With a fair value proposition at €220,000 and a 5% gross yield, this property offers a stable investment suitable for long-term holding in a region with solid rental demand. Yet, the 2.7% gap from fair value suggests limited upside appreciation, making it a steady rather than a high-growth investment. Value-add renovation While the property’s condition rating of 55/100 indicates room for improvements, the fair valuation suggests that significant renovation costs may not yield a sufficiently attractive return on investment. As the property is not underpriced, the appeal for value-add strategies may be constrained by the market's current pricing. Not ideal for student housing This studio lacks the space and features typically desired for student accommodations, which necessitate larger units and more amenities. Moreover, the current rental yield and neighborhood rating do not strongly support its viability in the student market. Not ideal for luxury market The property does not meet the expectations typically associated with luxury real estate, given its fair valuation and condition score. Additionally, the focus on vacation rentals suggests that higher-end buyers may not see sufficient value in this offering.
Tenant turnover risk The low tenant stability score of 50/100 may result in higher tenant turnover rates, increasing vacancy periods and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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