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 villa of 900 m², built in 2009, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa boasts a spacious outdoor entertaining area with a well-planned layout, ideal for hosting gatherings, in addition to its proximity to scenic coastal paths.
The valuation. The asking price of €750,000 is significantly below the fair value of €2,974,033, representing a difference of €2,224,033 (296.5%). This property is clearly underpriced.
Fair value modelled at €2,974,033 from the area baseline, adjusted for condition and location. Asking €750,000 sits €2,224,033 (296.5%) below — the upside to fair value.
Asking €750,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €2,730,600 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 75 · Materials 74 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €2,730,600 + condition +€14,063 + location +€229,370 = modelled fair value of €2,974,033 (€3,304/m²), a €2,224,033 (296.5%) gap versus the €750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 0dcf1a | Subject | €750,000 | €833 | — | 75 | 71 |
| Albufeira e Olhos de Água · 96c6ca | Active | €849,000 | €3,949 | 373.9% | 72 | 74 |
| Albufeira e Olhos de Água · 735680 | Active | €900,000 | €2,571 | 208.6% | 70 | 74 |
| Albufeira e Olhos de Água · 00199e | Active | €825,000 | €3,173 | 280.8% | 74 | 72 |
| Albufeira e Olhos de Água · ba5a44 | Active | €650,000 | €2,955 | 254.5% | 70 | 67 |
| Median comp | €837,000 | €3,064 | 267.7% | 71 | 73 |
Short-term vacation rental This 4-bed villa in Albufeira e Olhos de Água presents an attractive opportunity for short-term vacation rentals, capitalizing on the Algarve's rising rental demand due to its family-friendly environment and high tourism traffic. The significant gap of 296.5% from the fair value indicates the potential for strong returns as occupancy rates improve with effective marketing. Long-term rental The property is well-positioned for long-term rentals, given the robust demand from families that appreciate the quality schools and amenities in the area. At a fair value of €2,974,033, the property’s pricing suggests it provides an excellent foundation for stable cash flows and tenant retention. Buy-and-hold This villa stands out as an optimal buy-and-hold investment, as its significant undervaluation of 296.5% presents a rare opportunity to acquire a property with appreciation potential in a high-demand locale. With the safe and family-oriented characteristics of Albufeira e Olhos de Água, the property is well-suited to benefit from long-term market growth and neighborhood development.
Economic Vulnerability The property may face financial instability given its relatively low Economic Stability score of 60/100, which could impact tenant reliability and income consistency.
