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, 2-bathroom penthouse of 57 m² on the 3rd floor, built in 2005, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This penthouse uniquely boasts a spacious converted attic offering versatile living options, along with a massive private terrace ideal for entertaining and enjoying coastal views.
The valuation. The asking price of €640,000 sits significantly above the fair value of €271,557, resulting in an overpriced status of €368,443 (135.7%). This suggests a considerable gap that may deter potential investors.
Fair value modelled at €271,557 from 6 comparable sales in the area. Asking €640,000 sits €368,443 (135.7%) above — overpriced versus fair value.
Asking €640,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €221,114 (€3,879/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €221,114, adjusted for condition and micro-location, gives a modelled fair value of €271,557 (€4,764/m²), a €368,443 (135.7%) gap versus the €640,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 51cedb | Subject | €640,000 | €11,228 | — | 85 | 68 |
| Albufeira e Olhos de Água · 3a7048 | Active | €570,000 | €6,867 | 38.8% | 74 | 75 |
| rua da Correeira, 215 | Active | €282,000 | €4,623 | 58.8% | 78 | 70 |
| rua Samora Barros, 17 | Active | €499,000 | €4,664 | 58.5% | 80 | 73 |
| Albufeira e Olhos de Água · ab70c7 | Active | €365,000 | €4,867 | 56.7% | 70 | 72 |
| Median comp | €432,000 | €4,766 | 57.6% | 76 | 73 |
Short-term vacation rental Given the 135.7% gap from fair value, investing in this property as a short-term vacation rental is not advisable, as the potential yields of 1.6% gross do not justify the high entry cost. While the proximity to the Algarve supports tourism, seasonal fluctuations may further erode profitability. Long-term rental This 1-bed penthouse's fair value of €271,557 starkly contrasts its listing price of €640,000, indicating it is overpriced for long-term rental purposes. With a tenant quality score of 68/100, the property's high cost could result in a lack of demand, making it a risky investment in a fluctuating market. Buy-and-hold Utilizing a buy-and-hold strategy for this penthouse is unwise, considering it is overpriced by 135.7% against its fair value of €271,557. The combination of a low yield of 1.6% and a neighbourhood rating of 68/100 suggests that long-term appreciation potential may not cover the costly acquisition price.
Economic Dependence Risk The property faces potential vulnerabilities due to a moderate economic stability score of 65, indicating that economic fluctuations could negatively impact tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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