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.
3-bedroom, 4-bathroom house of 325 m², built in 1989, energy rating C. Located on rua do Castelinho, 1, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The penthouse includes a multifunctional space of 73 m², ideal for an office or private gym, enhancing its versatility beyond traditional living areas.
The valuation. The asking price of €649,000 reflects a significant discount compared to the fair value of €1,079,424, making it underpriced by €430,424 (66.3%). This presents a compelling opportunity for investment.
Fair value modelled at €1,079,424 from the area baseline, adjusted for condition and location. Asking €649,000 sits €430,424 (66.3%) below — the upside to fair value.
Asking €649,000 versus the rua do Castelinho, 1 area baseline of €986,050 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Castelinho, 1
Area baseline €986,050 + condition +€6,602 + location +€86,772 = modelled fair value of €1,079,424 (€3,321/m²), a €430,424 (66.3%) gap versus the €649,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Castelinho, 1 | Subject | €649,000 | €1,997 | — | 72 | 72 |
| Albufeira e Olhos de Água · 735680 | Active | €900,000 | €2,571 | 28.8% | 70 | 74 |
| Ferreiras · 6fbc55 | Active | €555,000 | €2,775 | 39.0% | 75 | 78 |
| Albufeira e Olhos de Água · 96c6ca | Active | €849,000 | €3,949 | 97.7% | 72 | 74 |
| Ferreiras · cfe03c | Active | €470,000 | €2,994 | 49.9% | 75 | 67 |
| Median comp | €702,000 | €2,885 | 44.4% | 74 | 74 |
Short-term vacation rental The property offers an attractive investment opportunity for short-term vacation rentals, leveraging its proximity to Algarve’s tourist destinations and a fair value gap indicating that it is underpriced. With a gross yield of 5.1%, this property can generate substantial passive income in a thriving rental market fueled by tourism. Buy-and-hold As a buy-and-hold investment, this property stands out due to its substantial gap from fair value, suggesting potential appreciation over time as the market stabilizes. The favorable condition rating of 76/100 further enhances long-term value retention and growth prospects. Family rental This 3-bedroom house is well-suited for family rentals, given its solid neighborhood rating of 72/100 and the overall appeal of the Albufeira location. The combination of stable tenant quality and the economic boost from tourism makes it a sustainable option for family-oriented tenants seeking security and comfort in their living arrangements.
Economic sensitivity risk The property is at risk due to its moderate economic stability score of 70, which indicates potential sensitivity to economic downturns that could affect rental income stability.
