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, 3-bathroom house of 133 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property offers exclusive access to a communal swimming pool and is located in a prestigious urbanization, enhancing its desirability for both homeowners and investors.
The valuation. The asking price of €525,000 is positioned slightly below the fair value of €555,013, indicating a difference of €30,013 (5.4%). Overall, this property is fairly valued. Buy-to-flip angle. Utilizing a minimal renovation strategy, the property can be upgraded and marketed to capitalize on its desirable location, potentially increasing resale value within a few months. Buy-to-let angle. With an estimated rental income of €1,400 per month, the gross yield of 3.2% aligns well with the area's robust tourist demand, making it a strong candidate for short-term vacation rentals.
Fair value modelled at €555,013 from 6 comparable sales in the area. Asking €525,000 sits €30,013 (5.4%) below — the upside to fair value.
Asking €525,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €486,754 (€3,660/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 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 €486,754, adjusted for condition and micro-location, gives a modelled fair value of €555,013 (€4,173/m²), a €30,013 (5.4%) gap versus the €525,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 2fcb44 | Subject | €525,000 | €3,947 | — | 68 | 69 |
| rua Jardins da Balaia, 2 | Active | €547,500 | €4,179 | 5.9% | — | 74 |
| rua Doutor Roberto Roquette | Active | €465,000 | €4,266 | 8.1% | 70 | 73 |
| Albufeira e Olhos de Água · 3df3ad | Active | €465,000 | €3,875 | 1.8% | 75 | 65 |
| Albufeira e Olhos de Água · 57f6f0 | Active | €698,000 | €3,674 | 6.9% | 72 | 77 |
| Median comp | €506,250 | €4,027 | 2.0% | 72 | 74 |
Short-term vacation rental The property’s positioning in Albufeira, a popular tourist destination, aligns with the potential for attractive short-term vacation rental income. However, with a gross yield of 3.2% and a fair valuation indicating it is priced at €525,000, which is just 5.4% below fair value, it does not present a compelling investment opportunity. Buy-and-hold While the property offers potential in a stable market driven by tourism, its condition rating of 68/100 and a neighbourhood score of 69/100 suggest only moderate growth prospects. The current fair evaluation means that while it is a reasonable option for long-term holding, the 3.2% yield does not compensate effectively for the investment relative to its €525,000 listing. Family rental Given the property’s size and proximity to amenities in Albufeira, it could serve as a viable family rental; however, the current pricing reflects a market that is fair rather than advantageous. The neighbourhood's moderate tenant quality and the fair valuation underscore the need to consider alternative investments for higher returns in this market. Not ideal for: Student housing The nature of Albufeira as a tourist destination limits the appeal of the property for student housing, which is typically driven by urban education centers. Thus, this strategy does not align with local demand. Not ideal for: Luxury market Given the property’s fair valuation and moderate condition ratings, it doesn't fit the criteria typically sought in the luxury market. Consequently, potential returns in this segment are limited. Not ideal for: Industrial investments The residential nature of the property in a tourist area makes it unsuitable for industrial investments, which require different market dynamics. Therefore, pursuing this strategy would not be feasible in this context.
Economic Vulnerability With an economic stability score of 55/100, there is a significant risk that market fluctuations could adversely impact property value or rental demand.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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