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 107 m² on the 3rd floor, built in 1993, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: This apartment's south-facing balcony ensures abundant sunlight and views, while the low condominium fee of €44 per month offers exceptional value in the Algarve market.
The valuation. The asking price of €298,500 is €48,697 (14.0%) below the fair value of €347,197, suggesting that this property is underpriced and presents a favorable acquisition opportunity. Buy-to-flip angle. The resale strategy focuses on capitalizing on the below-market purchase price, with potential for a swift renovation to modernize the kitchen and attract buyers willing to pay a premium. Buy-to-let angle. The rental income strategy estimates a gross yield of 3%, equating to approximately €746 per month, tapping into the tourist demand of the Algarve for short-term or long-term rentals.
Fair value modelled at €347,197 from 6 comparable sales in the area. Asking €298,500 sits €48,697 (14.0%) below — the upside to fair value.
Asking €298,500 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €297,125 (€2,777/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 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 €297,125, adjusted for condition and micro-location, gives a modelled fair value of €347,197 (€3,245/m²), a €48,697 (14.0%) gap versus the €298,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 0c05eb | Subject | €298,500 | €2,790 | — | 65 | 71 |
| rua do Município | Active | €150,000 | €2,206 | 20.9% | 60 | 73 |
| avenida dos Descobrimentos | Active | €240,000 | €3,333 | 19.5% | 70 | 73 |
| Albufeira e Olhos de Água · 6f422a | Active | €255,000 | €3,312 | 18.7% | 65 | 70 |
| Albufeira e Olhos de Água · 96c71d | Active | €195,000 | €3,362 | 20.5% | 62 | 72 |
| Median comp | €217,500 | €3,323 | 19.1% | 64 | 73 |
Short-term vacation rental The property is positioned well within a tourist-heavy area of Algarve, capitalizing on the 14.0% gap to fair value, which may offer potential for appreciation in rental income. With a gross yield of 3%, this 1-bed apartment could provide consistent cash flow during peak seasons, making it a lucrative option for short-term rentals. Buy-and-hold Given the strong neighborhood score of 71/100 and the relatively low entry price compared to fair value, this apartment represents a solid opportunity for long-term price appreciation. The overall condition rating of 66/100 indicates that some renovations might enhance value and rental potential over time. Long-term rental The stable demand for rental properties in the Algarve area, characterized by low crime rates and essential amenities, makes this apartment suitable for long-term leasing. Despite the 3% gross yield being modest, the overall lower purchase price compared to fair value enhances future capital growth prospects. Not ideal for: This property is less suited for student housing due to its size and location, which does not align with student needs. Additionally, its characteristics do not position it well within the luxury market.
Economic and Tenant Instability Risk The combined score of 65 in both economic and tenant stability indicates a potential risk of fluctuating rental income and higher vacancy rates in the future, as scores below 70 suggest instability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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