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.
5-bedroom, 3-bathroom house of 338 m², energy rating D. Located on rua da Escola Velha, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property features a generous 6,944 m² plot with a south-facing orientation that enhances natural light and outdoor living spaces, promoting a serene lifestyle close to amenities.
The valuation. The asking price of €1,950,000 is significantly above the fair value of €1,125,611, reflecting an overvaluation of €824,389, or 42.3%. This discrepancy indicates the property is overpriced. Buy-to-flip angle. Given the attractive design and high-quality materials, a short-term renovation could enhance appeal for a potential resale, although investment costs may be challenging. The anticipated ROI is uncertain due to the current market dynamics. Buy-to-let angle. With an estimated gross yield of 2.3% from a long-term rental strategy, generating approximately €3,738 monthly, the property may struggle to attract tenants without adjustments to pricing or additional amenities given the mixed neighborhood rating.
Fair value modelled at €1,125,611 from the area baseline, adjusted for condition and location. Asking €1,950,000 sits €824,389 (42.3%) above — overpriced versus fair value.
Asking €1,950,000 versus the rua da Escola Velha area baseline of €1,025,492 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 77 · Materials 81 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 80 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua da Escola Velha
Area baseline €1,025,492 + condition +€22,181 + location +€77,937 = modelled fair value of €1,125,611 (€3,330/m²), a €824,389 (42.3%) gap versus the €1,950,000 asking price.
Short-term vacation rental Given its location in the Algarve region, characterized by seasonal tourism, this property may not justify its price given the significant gap of 42.3% from fair value. With a gross yield of only 2.3%, the potential returns from a short-term rental are unlikely to align with the investment required. Long-term rental Investing in a long-term rental strategy for this property appears risky due to its overpriced status and a significant discrepancy from its fair value. With a condition rating of 79/100 and a neighborhood quality of 69/100, the property may struggle to attract quality tenants at the current high price point. Buy-and-hold The buy-and-hold strategy for this property is questionable given the 42.3% gap from fair value and its overall high listing price. The limited appreciation potential in a tourist-driven market suggests that holding this asset may not yield favorable returns over time. Not ideal for This property is not suitable for student housing or the luxury market given its current pricing and neighborhood ratings, which do not support either demographic effectively.
Economic Vulnerability The economic stability score of 55/100 indicates a potential for downturns, which could affect rental income and property value.
