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 house of 99 m², built in 2007, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property boasts direct access to outdoor terraces from all rooms and is set in a tranquil cul-de-sac that enhances privacy and accessibility for individuals with reduced mobility.
The valuation. The asking price of €499,000 is significantly above the fair value of €435,823, marking an excess of €63,177 or 14.5%. This indicates that the property is overpriced. Buy-to-flip angle. With renovations likely needed to enhance appeal, a buy-to-flip strategy could aim for a resale at approximately €550,000, targeting a net profit post-renovation costs. Buy-to-let angle. The expected rental income of €1,289/month provides a gross yield of 3.1%, appealing for long-term rentals in a tourist-heavy area, capitalizing on the high demand for short-term vacation stays.
Fair value modelled at €435,823 from 6 comparable sales in the area. Asking €499,000 sits €63,177 (14.5%) above — overpriced versus fair value.
Asking €499,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €379,062 (€3,829/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €379,062, adjusted for condition and micro-location, gives a modelled fair value of €435,823 (€4,402/m²), a €63,177 (14.5%) gap versus the €499,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · e553e3 | Subject | €499,000 | €5,040 | — | 72 | 73 |
| rua Quinta da Balaia, 29 | Active | €998,000 | €7,677 | 52.3% | 75 | 68 |
| Albufeira e Olhos de Água · 3a71af | Active | €535,000 | €5,095 | 1.1% | 60 | 71 |
| Albufeira e Olhos de Água · 57f890 | Active | €680,000 | €4,857 | 3.6% | 76 | 73 |
| praceta Pinhal | Active | €420,000 | €3,717 | 26.3% | 72 | 79 |
| Median comp | €607,500 | €4,976 | 1.3% | 74 | 72 |
Short-term vacation rental The property is overpriced with a listing price of €499,000 compared to a fair value of €435,823, resulting in a 14.5% premium. Given the gross yield of 3.1%, investing in this segment may not yield the expected financial returns due to inflated costs relative to market conditions. Buy-and-hold This house presents an overpriced scenario, as the purchase price exceeds the fair market value by 14.5%. Although the location in Algarve is appealing for long-term growth, the low yield of 3.1% suggests that holding onto this investment may not be financially advantageous. Family rental The current listing price of €499,000 reveals that the property is overpriced when matched against its fair value of €435,823. With a solid neighbourhood rating of 73/100, renting to families might attract tenants, but the inflated purchase price could hinder overall profitability. Not ideal for: Student housing, Industrial investment, Luxury market
Economic and Tenant Stability Risk: With both economic stability and tenant stability scores at 70/100, the property faces a heightened risk of market fluctuations and potential tenant turnover, which could impact cash flow and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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