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, 3-bathroom house of 179 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a fully equipped kitchen with seamless access to a barbecue space, ideal for entertaining, and a serene garden adorned with fruit trees providing delightful shade.
The valuation. The asking price of €899,500 is significantly above fair value, which is assessed at €598,215, representing an overvaluation of €301,285 or 33.5%. This property is priced beyond its justified worth.
Fair value modelled at €598,215 from the area baseline, adjusted for condition and location. Asking €899,500 sits €301,285 (33.5%) above — overpriced versus fair value.
Asking €899,500 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €543,086 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 80 · Materials 78 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €543,086 + condition +€9,509 + location +€45,619 = modelled fair value of €598,215 (€3,342/m²), a €301,285 (33.5%) gap versus the €899,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 25f8ad | Subject | €899,500 | €5,025 | — | 80 | 71 |
| Albufeira e Olhos de Água · 8936d3 | Active | €899,500 | €5,025 | 0% | 74 | 72 |
| rua Júlio Diniz S / N | Active | €1,080,000 | €5,870 | 16.8% | 70 | 64 |
| Albufeira e Olhos de Água · 6fb9c1 | Active | €615,000 | €3,661 | 27.2% | 82 | 75 |
| rua Júlio Diniz | Active | €1,080,000 | €5,870 | 16.8% | 67 | 74 |
| Median comp | €989,750 | €5,448 | 8.4% | 72 | 73 |
Long-term rental The property in Albufeira e Olhos de Água offers a gross yield of only 2.7%, which is not compelling given its listing price of €899,500 versus a fair value of €598,215. This significant 33.5% gap suggests that the investment may not yield satisfactory returns over the long term due to its overpriced nature. Short-term vacation rental While the location near the coastal area of Algarve attracts tourists, the high listing price of €899,500 indicates that it is overpriced compared to its fair value of €598,215. The 2.7% yield further complicates the financial viability for short-term vacation rental operations, making this a less favorable investment option. Buy-and-hold Investing in this property as a buy-and-hold strategy may be less advantageous due to its overpriced listing of €899,500 relative to the fair value of €598,215. The property’s yield of just 2.7% does not support a strong long-term investment case, indicating potential issues in future appreciation and profitability.
Tenant turnover risk With a tenant stability score of 60/100, there is a significant possibility of high tenant turnover, which may lead to increased vacancy rates and costs associated with finding new tenants.
