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 85 m² on the 2nd floor, built in 2004, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This apartment features two private balconies that enhance outdoor living, along with secured digital access for increased safety.
The valuation. The asking price of €320,000 is positioned below the fair value of €359,491, presenting an opportunity at €39,491 (11.0%) underpriced compared to market standards. Buy-to-flip angle. A resale strategy focusing on cosmetic upgrades could draw interest from buyers in the thriving Albufeira area, enhancing profitability when flipping. Buy-to-let angle. With a gross yield of 3.5%, the rental income strategy targets short-term vacation rentals, capitalizing on the tourist-driven economy and high demand in the Algarve region.
Fair value modelled at €359,491 from 6 comparable sales in the area. Asking €320,000 sits €39,491 (11.0%) below — the upside to fair value.
Asking €320,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €309,556 (€3,642/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 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 €309,556, adjusted for condition and micro-location, gives a modelled fair value of €359,491 (€4,229/m²), a €39,491 (11.0%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 834222 | Subject | €320,000 | €3,765 | — | 70 | 72 |
| Albufeira e Olhos de Água · 4a7d65 | Active | €260,000 | €4,727 | 25.6% | 72 | 75 |
| Albufeira e Olhos de Água · f46a55 | Active | €395,000 | €3,559 | 5.5% | 70 | 68 |
| rua dos Mares | Active | €250,000 | €3,731 | 0.9% | 75 | 73 |
| Albufeira e Olhos de Água · 653002 | Active | €284,000 | €3,550 | 5.7% | 73 | 71 |
| Median comp | €272,000 | €3,645 | 3.2% | 73 | 72 |
Short-term vacation rental This 1-bed apartment in Albufeira e Olhos de Água is well-positioned for short-term vacation rentals due to its proximity to tourist amenities and a solid gross yield of 3.5%. The fair value of €359,491 indicates it is currently underpriced, offering an attractive investment opportunity in a tourism-driven economy. Buy-and-hold As a buy-and-hold investment, this property presents a favorable long-term outlook, enhanced by a relatively low crime rate and a strong demand for quality housing in a popular tourist area. With a valuation gap of 11.0% below fair value, investors can capitalize on potential appreciation consistent with regional economic trends. Family rental The apartment is suitable for family rentals, given the neighborhood's amenities and good tenant quality, making it a desirable living environment. The 3.5% yield and 73/100 condition of the property support the investment appeal while it remains underpriced relative to its fair value, indicating potential for stable rental income. Not ideal for: Student housing This property does not align well with student housing strategies due to the tourism-focused market which typically attracts short-term visitors rather than long-term student tenants. Not ideal for: Luxury market Entering the luxury market with this property may prove challenging, as the amenities and overall condition do not meet the high standards typically expected by luxury clientele. Not ideal for: Value-add renovation The current condition of 73/100 does not suggest a strong value-add renovation opportunity, especially since significant capital improvements may not align with the market expectations in this area.
Economic Vulnerability With an economic stability score of 65/100, there is a risk of fluctuations in local market conditions, potentially impacting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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