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.
4-bedroom, 5-bathroom house of 220 m², energy rating C. Located Guia parish, Albufeira municipality, Faro district. Noteworthy Features: The property boasts an elegant independent studio crafted from wood and glass, seamlessly integrated into nature, currently serving as a gym and office for versatile use.
The valuation. The asking price of €995,000 exceeds the fair value of €764,398 by €230,602 (23.2%), indicating the property is overpriced. This discrepancy highlights the need for cautious investment consideration.
Fair value modelled at €764,398 from the area baseline, adjusted for condition and location. Asking €995,000 sits €230,602 (23.2%) above — overpriced versus fair value.
Asking €995,000 versus the Guia, Albufeira, Faro area baseline of €667,480 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 85 · Materials 88 · Room dimensions 87). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Guia, Albufeira, Faro
Area baseline €667,480 + condition +€27,500 + location +€69,418 = modelled fair value of €764,398 (€3,475/m²), a €230,602 (23.2%) gap versus the €995,000 asking price.
Short-term vacation rental Despite the property's desirable location in the Algarve, its listing price of €995,000 exceeds the fair value by 23.2%, indicating that it is overpriced for the potential returns. The gross yield of 3.8% does not justify this premium, which could deter potential investors looking for viable vacation rental opportunities. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable given its current listing price of €995,000, which is substantially above the fair value of €764,398. Overpricing reduces long-term potential returns and may limit appreciation in this competitive market. Luxury market Even though the property has characteristics that could appeal to the luxury market — such as its size and condition rating of 86/100 — the €995,000 price tag suggests it is overpriced relative to market expectations. In a region heavily influenced by tourism, this misalignment may hinder the property's attractiveness to affluent buyers seeking sound investments.
Economic Dependence Risk: With an economic stability score of 70/100, there is a moderate risk of economic fluctuations impacting property values and tenant demand.
