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.
6-bedroom, 6-bathroom house of 680 m², built in 2007, energy rating D. Located on rua Ilha de São Miguel, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This villa's distinctive architecture emphasizes spacious layouts with wide balconies, ensuring stunning views and abundant natural light throughout all three floors. Unique Selling Point: The lush garden area offers a serene escape, complementing the private pool for ultimate relaxation.
The valuation. The asking price of €1,670,000 is €634,917 (38.0%) below the fair value of €2,304,917. This signals an attractive opportunity in the current market.
Fair value modelled at €2,304,917 from the area baseline, adjusted for condition and location. Asking €1,670,000 sits €634,917 (38.0%) below — the upside to fair value.
Asking €1,670,000 versus the rua Ilha de São Miguel area baseline of €2,063,120 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 80 · Materials 85 · Room dimensions 87). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Ilha de São Miguel
Area baseline €2,063,120 + condition +€85,000 + location +€156,797 = modelled fair value of €2,304,917 (€3,390/m²), a €634,917 (38.0%) gap versus the €1,670,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Ilha de São Miguel | Subject | €1,670,000 | €2,456 | — | 80 | 69 |
| rua Teixeira de Pascoais | Active | €1,200,000 | €2,559 | 4.2% | 75 | 72 |
| Albufeira e Olhos de Água · 735680 | Active | €900,000 | €2,571 | 4.7% | 70 | 74 |
| Albufeira e Olhos de Água · ba5a44 | Active | €650,000 | €2,955 | 20.3% | 70 | 67 |
| travessa Antero de Quental | Active | €1,790,000 | €4,334 | 76.5% | 75 | 74 |
| Median comp | €1,050,000 | €2,763 | 12.5% | 73 | 73 |
Short-term vacation rental The property is ideally located in a popular coastal Algarve area, making it suitable for short-term vacation rentals, with a projected yield of 5.3%. Given the 38% gap against its fair value of €2,304,917, it presents an attractive opportunity within the high-demand tourism sector. Buy-and-hold With a fair value significantly exceeding the listing price, this investment offers strong long-term growth potential in a fluctuating real estate market. Additionally, the location benefits from seasonal economic activity which could enhance property appreciation over time. Long-term rental Considering the steady demand for long-term rentals in Albufeira e Olhos de Água, this property demonstrates resilience against market fluctuations. The property's living space combined with its decent condition of 84/100 makes it a solid long-term rental investment for stable cash flow, despite a mixed neighborhood rating of 69/100.
Economic Vulnerability The property has a low economic stability score of 55/100, indicating potential risks in maintaining revenue during economic downturns.
