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, 4-bathroom house of 260 m², built in 2012, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa offers a unique architectural design with three distinct levels, maximizing natural light and unobstructed views from multiple balconies and patio areas.
The valuation. The asking price of €825,000 is significantly below the fair value of €1,151,439, representing a discount of €326,439 (39.6%). This property is considered underpriced in the current market.
Fair value modelled at €865,164 from the area baseline, adjusted for condition and location. Asking €825,000 sits €40,164 (4.9%) below — the upside to fair value.
Asking €825,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €788,840 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 74 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx. Full condition report →
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €788,840 + condition +€6,906 + location +€69,418 = modelled fair value of €865,164 (€3,328/m²), a €40,164 (4.9%) gap versus the €825,000 asking price.
Short-term vacation rental This property is an excellent opportunity for short-term vacation rentals, given its attractive location in Albufeira, a popular tourist destination. The significant gap of 39.6% between the current listing price and the fair value indicates strong potential for appreciation and rental demand. Long-term rental Investing in this property for long-term rental could yield a steady return due to the area's appeal to expatriates and its growing population. The gross yield of 3.4% is reasonable, especially considering the 39.6% gap to fair value, signaling potential for both rental income and value growth. Buy-and-hold As a buy-and-hold investment, this property stands out due to its potential appreciation in value within a continually desirable location like Albufeira e Olhos de Água. With a significant fair value differential of 39.6%, holding this asset may yield substantial returns over time as the neighborhood develops further.
Economic Vulnerability The economic stability score of 65 indicates potential challenges in the local economy that could affect rental income and property value.
