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 100 m², built in 1974, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property features a large terrace perfect for creating a tranquil outdoor retreat with expansive sea and marina views, enhancing its appeal for relaxation and entertainment.
The valuation. The asking price of €950,000 is significantly above its fair value of €343,813, creating a difference of €606,187 (63.8%). This property is fundamentally overpriced.
Fair value modelled at €343,813 from the area baseline, adjusted for condition and location. Asking €950,000 sits €606,187 (63.8%) above — overpriced versus fair value.
Asking €950,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €303,400 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 76 · Amenities 75 · Economic 69 · Tenant Quality 72). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €303,400 + condition +€12,500 + location +€27,913 = modelled fair value of €343,813 (€3,438/m²), a €606,187 (63.8%) gap versus the €950,000 asking price.
Short-term vacation rental The property is overpriced at €950,000, representing a 63.8% gap over the fair value of €343,813, which limits its viability for short-term rentals. With a gross yield of only 1.9%, the investment does not offer sufficient return potential compared to its high cost. Long-term rental Given the significant markup in the asking price, this property does not present a reasonable opportunity for long-term rental investment, especially with the current yield of 1.9%. The combination of being overpriced and the economic reliance on tourism raises concerns about tenant quality and stability in rental income. Buy-and-hold The buy-and-hold strategy for this property is not advisable due to its overpricing and the lack of sufficient yield at 1.9%. The high acquisition cost relative to fair value diminishes the potential for long-term appreciation and stable rental returns. Not ideal for: Student housing & Luxury market The property is not suitable for student housing or the luxury market due to its overpriced nature, which limits appeal and marketability in these segments. The current economic environment in Albufeira indicates a higher risk for long-term investments in these niches.
Economic Vulnerability The economic stability score of 69 indicates a moderate risk, suggesting potential fluctuations in market conditions that could impact property value or rental income. Tenant Uncertainty With a tenant stability score of 72, there is an above-average likelihood of tenant turnover, which can lead to increased vacancy rates and associated costs.
