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 85 m², built in 1997, energy rating E. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: The spacious back terrace includes an outdoor dining area with an integrated barbecue, enhancing the property’s appeal for leisure and entertainment. Condition: Recently renovated and well-maintained throughout.
The valuation. The asking price of €460,000 is substantially below the fair value of €535,982, representing a difference of €75,982 (14.2%). This indicates that the property is currently underpriced. Buy-to-flip angle. A resale strategy targets the growing market around Albufeira, focusing on short-term renovations to enhance appeal. With the current pricing and market trends, profit margins could be realized rapidly. Buy-to-let angle. The potential for long-term rental income is promising, with an estimated gross yield of 3% at €1,150/month. Given the area's reliance on tourism, a short-term vacation rental strategy may yield even higher returns.
Fair value modelled at €535,982 from 6 comparable sales in the area. Asking €460,000 sits €75,982 (14.2%) below — the upside to fair value.
Asking €460,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €475,475 (€5,594/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €475,475, adjusted for condition and micro-location, gives a modelled fair value of €535,982 (€6,306/m²), a €75,982 (14.2%) gap versus the €460,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · e553ba | Subject | €460,000 | €5,412 | — | 80 | 64 |
| Albufeira e Olhos de Água · 38b5b9 | Active | €440,000 | €7,586 | 40.2% | 78 | 68 |
| estrada de Albufeira | Active | €899,500 | €5,025 | 7.1% | 72 | 71 |
| caminho do Pontão, 21 | Active | €595,000 | €4,612 | 14.8% | 75 | 63 |
| rua das Laranjeiras, 38 | Active | €895,000 | €8,950 | 65.4% | 90 | 75 |
| Median comp | €745,000 | €6,306 | 16.5% | 77 | 70 |
Short-term vacation rental This property presents a compelling opportunity in the vacation rental market, leveraging its proximity to tourist hotspots in Albufeira. With a gross yield of 3%, the house is poised to benefit from strong seasonal demand and can maximize rental income during peak tourism periods. Buy-and-hold Acquiring this property for a long-term investment aligns with the growth potential given its current listing price, which is approximately 14.2% below the fair value. The solid condition rating of 78/100 adds to its attractiveness as a stable asset for future appreciation and equity growth in a tourism-centric location. Long-term rental While the gross yield of 3% is modest, this property can serve as a reliable long-term rental in a neighborhood with a 64/100 rating for tenant quality. Given the overall tourism-driven economy of the region, it provides a steady rental income potential, albeit at lower returns than may be obtained through short-term rentals.
Economic Vulnerability The property has an economic stability score of 50/100, indicating a high risk of economic downturns affecting 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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