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 house of 72 m², built in 1976, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property features a large terrace with unobstructed panoramic views over the sea and historic center, offering a perfect outdoor space for leisure activities.
The valuation. The asking price of €399,000 sits €50,024 (14.3%) above the fair value of €348,976, indicating the property is overpriced. This discrepancy suggests potential challenges for a buyer in achieving a satisfactory return on investment.
Fair value modelled at €348,976 from 6 comparable sales in the area. Asking €399,000 sits €50,024 (14.3%) above — overpriced versus fair value.
Asking €399,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €332,343 (€4,616/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 57/100 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 €332,343, adjusted for condition and micro-location, gives a modelled fair value of €348,976 (€4,847/m²), a €50,024 (14.3%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 07fc3c | Subject | €399,000 | €5,542 | — | 54 | 67 |
| rua do Malpique | Active | €630,000 | €4,599 | 17.0% | — | 66 |
| rua Jardins da Balaia, 2 | Active | €547,500 | €4,179 | 24.6% | — | 74 |
| Albufeira e Olhos de Água · 3a71af | Active | €535,000 | €5,095 | 8.1% | 60 | 71 |
| rua Sir Cliff Richard | Active | €1,450,000 | €7,592 | 37.0% | 65 | 78 |
| Median comp | €588,750 | €4,847 | 12.5% | 63 | 73 |
Short-term vacation rental The property is overpriced by 14.3%, which diminishes its attractiveness for short-term vacation rental investments in Algarve, a key tourist destination. With a gross yield of only 2.6%, potential returns are unlikely to meet investor expectations given the competitive market dynamics. Buy-and-hold Currently priced at €399,000, the property exceeds its fair value of €348,976, making it a less desirable option for a buy-and-hold strategy focused on long-term appreciation. Additionally, the condition score of 57/100 indicates the need for improvements, which could further consume resources without guaranteeing commensurate gains. Family rental At a listing price of €399,000, this property is above its fair value, leading to concerns about its viability as a family rental investment. The neighbourhood rating of 67/100 indicates reasonable quality, yet the already high price tag combined with a modest yield of 2.6% raises questions on the potential for solid returns in a family rental context.
Economic Vulnerability With an economic stability score of 60/100 and a tenant stability score of 65/100, there is a significant risk that external economic fluctuations could adversely impact tenant retention and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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