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 95 m², energy rating C. Located on rua do Município, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The apartment boasts a generous balcony with unobstructed views, ideal for enjoying the Algarve's climate, and is part of the luxury amenities at Hotel Paraíso.
The valuation. The asking price of €195,000 is significantly below the fair value of €250,843, representing a difference of €55,843 (22.3%). The property is thus classified as underpriced.
Fair value modelled at €250,843 from 5 comparable sales in the area. Asking €195,000 sits €55,843 (22.3%) below — the upside to fair value.
Asking €195,000 versus the rua do Município area baseline of €233,215 (€2,455/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 56/100 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 €233,215, adjusted for condition and micro-location, gives a modelled fair value of €250,843 (€2,640/m²), a €55,843 (22.3%) gap versus the €195,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Município | Subject | €195,000 | €2,053 | — | 61 | 70 |
| Albufeira e Olhos de Água · 09000a | Active | €160,000 | €2,807 | 36.8% | 55 | 71 |
| rua José Afonso | Active | €165,000 | €2,391 | 16.5% | 57 | 70 |
| rua do Município, 18 | Active | €249,000 | €2,830 | 37.8% | — | 64 |
| Albufeira e Olhos de Água · efdd9c | Active | €159,900 | €2,351 | 14.6% | 69 | 72 |
| Median comp | €162,500 | €2,599 | 26.6% | 57 | 71 |
Short-term vacation rental The property is an attractive option for a short-term vacation rental, given its proximity to Albufeira's tourist attractions and strong tourism influence in the Algarve. With a gross yield of 5% and a fair value estimate indicating it is 22.3% undervalued, this apartment stands to generate solid returns in a high-demand rental market. Long-term rental This 1-bed apartment can cater to the growing demand for long-term rentals in Albufeira, especially given the neighbourhood's positive environment and amenities. With a fair value significantly higher than the listing price, the investment offers stability with an appealing yield of 5%. Family rental The apartment's spacious layout and proximity to international schools make it an ideal choice for family rentals in a family-friendly neighbourhood. The attractive pricing, 22.3% below fair value, further enhances its appeal for accommodating families looking for comfortable living arrangements near essential services.
Economic vulnerability With an economic stability score of 60/100, there is a risk of fluctuating market conditions negatively 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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