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, 1-bathroom house of 105 m², built in 2007, energy rating E. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Notable Features: This property offers a generous outdoor plot of 940m², with significant potential for expansion and customization both in living space and landscaping design.
The valuation. The asking price of €535,000 is significantly above fair value, which is estimated at €449,442, representing an overpriced situation by €85,558 (19.0%). This discrepancy suggests that potential investors may want to proceed with caution.
Fair value modelled at €449,442 from 6 comparable sales in the area. Asking €535,000 sits €85,558 (19.0%) above — overpriced versus fair value.
Asking €535,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €418,475 (€3,985/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 62/100 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 €418,475, adjusted for condition and micro-location, gives a modelled fair value of €449,442 (€4,280/m²), a €85,558 (19.0%) gap versus the €535,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 3a71af | Subject | €535,000 | €5,095 | — | 60 | 71 |
| rua do Malpique | Active | €630,000 | €4,599 | 9.7% | — | 66 |
| caminho do Pontão | Active | €325,000 | €5,000 | 1.9% | 55 | 72 |
| rua Jardins da Balaia, 2 | Active | €547,500 | €4,179 | 18.0% | — | 74 |
| Albufeira e Olhos de Água · 3df3ad | Active | €465,000 | €3,875 | 23.9% | 75 | 65 |
| Median comp | €506,250 | €4,389 | 13.9% | 65 | 69 |
Short-term vacation rental The 2-bed house in Albufeira e Olhos de Água is currently listed at €535,000, which is considerably more than the fair value of €449,442, resulting in a 19% premium. With a gross yield of only 2.9%, the high asking price limits its potential for short-term rental profitability. Buy-and-hold Given the property's asking price that exceeds its fair value by 19%, the 2-bed house may not represent the best long-term investment choice for buy-and-hold strategies. Even with the Algarve's robust tourism sector, the low yield of 2.9% does not support sustainable long-term growth on this investment. Luxury market The 2-bed house is positioned at a price that reflects a 19% overvaluation compared to its fair value, making it less attractive for entry into the luxury market. While the neighbourhood scores a decent 71/100, the overpriced nature of the property suggests that the premium clientele may not find sufficient value at this asking price.
Economic Sensitivity The property may face challenges due to its economic stability score of 65/100, indicating potential vulnerability to market fluctuations that could affect rental income continuity.
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