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, 2-bathroom apartment of 107 m², energy rating E. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Feature: This apartment includes a private terrace accessible from the modern kitchen, providing an ideal space for outdoor dining or relaxation with sea views.
The valuation. The asking price of €395,000 is slightly below the fair value of €406,233, indicating a fair valuation with a difference of €11,233 (2.8%). This aligns with a reasonable market expectation for the property.
Fair value modelled at €406,233 from 6 comparable sales in the area. Asking €395,000 sits €11,233 (2.8%) below — the upside to fair value.
Asking €395,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €329,053 (€3,075/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €329,053, adjusted for condition and micro-location, gives a modelled fair value of €406,233 (€3,797/m²), a €11,233 (2.8%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 0c05ed | Subject | €395,000 | €3,692 | — | 75 | 67 |
| Albufeira e Olhos de Água · 89e703 | Active | €395,000 | €3,591 | 2.7% | 75 | 81 |
| Ferreiras · ab7119 | Active | €365,000 | €2,724 | 26.2% | 76 | 79 |
| Albufeira e Olhos de Água · d05a43 | Active | €249,000 | €3,831 | 3.8% | 75 | 70 |
| Albufeira e Olhos de Água · 6c7901 | Active | €425,000 | €3,972 | 7.6% | 74 | 72 |
| Median comp | €380,000 | €3,711 | 0.5% | 75 | 76 |
Short-term vacation rental The property’s location near coastal tourist spots positions it well for a short-term vacation rental strategy, likely leading to a stable occupancy rate, albeit with a lower yield of 3.5%. However, the seasonal nature of tourism could limit income consistency throughout the year, which should be factored into cash flow projections. Buy-and-hold With a fair value of €406,233, the property reflects moderate appreciation potential, yet yields a modest gross return of 3.5%, aligning with a conservative buy-and-hold investment outlook. The local economic conditions and proximity to amenities suggest a stable, if not rapidly appreciating, asset for long-term investors. Value-add renovation Given the property’s current condition rating of 78/100, there is potential for value-add renovations to enhance both the living space and rental income. However, with a fair value just slightly above the listing price, any renovation costs must be carefully analyzed to justify the investment without moving the property beyond its fair market value. Not ideal for student housing The property's setting does not lend itself well to student housing, as the area's amenities and tenant demographics do not align with student needs. Moreover, the seasonal impacts on the local economy may make it less stable for a consistent student rental market. Not ideal for luxury market Positioned in a neighborhood with a score of 67/100, the property does not sufficiently meet the expectations of the luxury market, limiting its appeal to higher-end buyers. The current fair value and condition suggest that it is better suited for more modest investment strategies rather than luxury-focused ones.
[Economic Instability Risk] With an economic stability score of 65/100, there is a notable risk of economic fluctuations that could impact tenant demand and rental income reliability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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