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.
3-bedroom, 3-bathroom house of 197 m². Located on rua das Ferreirinhas S / N, Ferreiras parish, Albufeira municipality, Faro district. Noteworthy Feature: This exclusive townhouse in a secluded gated community includes a large interior garage for three vehicles and a carefully organized outdoor terrace with a barbecue area and wooden pergola.
The valuation. The asking price of €669,000 sits 1.0% above the fair value of €662,228, indicating the property is overpriced by €6,772. Such a valuation suggests limited potential for immediate equity gain. Buy-to-flip angle. A buy-to-flip strategy could involve capitalizing on minor renovations to increase appeal, targeting a resale at a profitable margin over the current asking price. Adjustments could attract higher offers from buyers before market saturation occurs. Buy-to-let angle. With an estimated gross yield of 3.8%, the property can generate approximately €2,118 per month through long-term rentals. This income stream could provide consistent returns, leveraging Algarve's robust tourism sector.
Fair value modelled at €662,228 from the area baseline, adjusted for condition and location. Asking €669,000 sits €6,772 (1.0%) above — overpriced versus fair value.
Asking €669,000 versus the rua das Ferreirinhas S / N area baseline of €597,698 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 70 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua das Ferreirinhas S / N
Area baseline €597,698 + condition +€9,542 + location +€54,988 = modelled fair value of €662,228 (€3,362/m²), a €6,772 (1.0%) gap versus the €669,000 asking price.
Short-term vacation rental The property is priced at €669,000, only 1.0% above its fair value of €662,228, which limits its appeal in a highly competitive short-term vacation rental market. With a gross yield of 3.8% and the neighbourhood rating at 73/100, the potential returns may not justify the current asking price, signaling it is overpriced. Long-term rental While the property has a decent condition score of 78/100, its listing price of €669,000 does not align with market expectations for long-term rental investments given the minimal gap from fair value. As a result, the yield of 3.8% may not sufficiently compensate for the elevated purchase price, indicating the property is overpriced. Buy-and-hold Investing in this property at the current asking price of €669,000 poses a challenge for long-term appreciation, considering it is only slightly above the fair value of €662,228. The dynamics of the local market, influenced by seasonal employment, suggest that holding onto this property may not meet expectations for value growth, leading to the conclusion that it is overpriced. Not ideal for student housing The property’s features and price point do not align with the student housing demographic, which typically seeks more affordable rental options. Consequently, aiming to rent this property to students may result in an unfavorable investment due to its current pricing. Not ideal for luxury market Given that the property is priced at €669,000, it does not meet the characteristics typically associated with luxury properties, further indicating its unsuitability for that market segment. Thus, pursuing a luxury market strategy may not yield satisfactory returns due to the property’s overpriced nature.
Economic Sensitivity: With both the economic stability and tenant stability scores at 70/100, there is a significant risk that a downturn in the local economy could lead to increased vacancies or rent reductions, negatively impacting cash flow.
