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 163 m², built in 2009, energy rating C. Located on rua Outeiro da Balaia, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This end unit benefits from expansive outdoor space, including a large terrace with scenic countryside views, enhancing the enjoyment of the Algarve climate.
The valuation. The asking price of €495,000 is slightly above the fair value of €476,552, reflecting a difference of €18,448 or 3.9%. The property is considered fairly priced in the current market conditions.
Fair value modelled at €476,552 from 6 comparable sales in the area. Asking €495,000 sits €18,448 (3.9%) above — overpriced versus fair value.
Asking €495,000 versus the rua Outeiro da Balaia area baseline of €361,100 (€2,215/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €361,100, adjusted for condition and micro-location, gives a modelled fair value of €476,552 (€2,924/m²), a €18,448 (3.9%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Outeiro da Balaia | Subject | €495,000 | €3,037 | — | 84 | 73 |
| Ferreiras · cfe03c | Active | €470,000 | €2,994 | 1.4% | 75 | 67 |
| Albufeira e Olhos de Água · 261e47 | Active | €395,000 | €2,904 | 4.4% | 72 | 75 |
| beco das Violetas | Active | €420,000 | €3,387 | 11.5% | 80 | 70 |
| beco das Violetas | Active | €515,000 | €2,943 | 3.1% | 72 | 66 |
| Median comp | €445,000 | €2,969 | 2.2% | 74 | 69 |
Long-term rental This property, while not pushing the limits of rental yield at 3.7% gross, may appeal to long-term residents drawn to the scenic Algarve region. However, the fair valuation indicates it isn't a prime candidate for exceptional return performance in a stable but moderate housing market. Short-term vacation rental With its proximity to the beaches in a popular tourist spot like Albufeira, this property holds potential for short-term vacation rentals. The slightly above fair market value suggests that while there may be some demand, the investment returns may not be optimal given the seasonal variability. Buy-and-hold Acquiring this property for a buy-and-hold strategy could be strategically sound given the allure of the Algarve for future appreciation. Nevertheless, the fair pricing suggests that investors may need patience for value growth, as the current market dynamics do not point to immediate gains. Not ideal for: Luxury market This property does not cater to the luxury market, which often seeks more exclusive features and locations. It will likely struggle to command high prices that define luxury properties in the area. Not ideal for: Student housing The residential appeal to students is limited, considering the tourist-driven economy of Albufeira. Hence, there’s minimal opportunity for sustained rental income from student tenants in this context.
Potential Economic Volatility: With both economic and tenant stability scores at 70/100, there is a risk of fluctuations in income and occupancy rates that could affect long-term profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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