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 apartment of 68 m², built in 1988, energy rating C. Located Guia parish, Albufeira municipality, Faro district. Key Feature: The apartment's layout effectively maximizes space, offering flexibility in usage while providing direct access to a private backyard ideal for outdoor entertaining.**
The valuation. The asking price of €270,000 sits €26,428 (10.9%) above the fair value of €243,572, indicating the property is fairly priced within the market context. Buy-to-flip angle. A buy-to-flip strategy could involve minor renovations to enhance the appeal, targeting a resale at a competitive mid-to-high market price in the desirable Algarve region. Buy-to-let angle. The rental income strategy aims for a gross yield of 3.7%, generating an estimated €833/month, leveraging the area's strong demand for both short-term vacation rentals and long-term rentals.
Fair value modelled at €243,572 from 4 comparable sales in the area. Asking €270,000 sits €26,428 (10.9%) above — overpriced versus fair value.
Asking €270,000 versus the Guia, Albufeira, Faro area baseline of €274,248 (€4,033/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 below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €274,248, adjusted for condition and micro-location, gives a modelled fair value of €243,572 (€3,582/m²), a €26,428 (10.9%) gap versus the €270,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Guia · 9af7d5 | Subject | €270,000 | €3,971 | — | 63 | 75 |
| urbanização Sol Nascente, 1 | Active | €289,000 | €3,440 | 13.4% | 68 | 73 |
| Guia · 41ffb6 | Active | €340,000 | €6,538 | 64.7% | 65 | 70 |
| rua da Oficina | Active | €375,000 | €3,099 | 21.9% | 68 | 74 |
| Guia · 6fb7da | Active | €350,000 | €3,723 | 6.2% | — | 66 |
| Median comp | €345,000 | €3,582 | 9.8% | 68 | 72 |
Short-term vacation rental Given the apartment's location in Albufeira, a renowned tourist hotspot, it has the potential to generate a moderate gross yield of 3.7%. However, its fair value assessment suggests that the property is currently priced at a 10.9% premium, making it a less attractive investment in the short-term rental market. Long-term rental With a decent condition rating of 68/100 and a neighbourhood score of 75/100, this property could appeal to long-term tenants looking for residence in a desirable area. Despite these favorable aspects, the listing price indicates that it is fairly valued, offering limited upside potential for investors. Value-add renovation While the apartment's current condition is reasonable at 68/100, potential investors could consider renovations to enhance its attractiveness and generate higher rental income. However, taking into account the fair value pricing, the investment may not offer significant returns relative to the cost of any improvements made. Not ideal for student housing The property is situated in a tourist-focused area, which does not support sustained demand for student housing. As such, pursuing this strategy may result in higher vacancy rates and lower returns. Not ideal for industrial investment Given that the property is a residential apartment located in a tourist-centric neighborhood, it is not suited for any industrial investment strategies. This alignment with residential demand underscores the property's limitations for such a use.
Economic Vulnerability With an economic stability score of 65/100, the property may be susceptible to fluctuations in the local economy, potentially affecting demand and property value.
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