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, built in 2009, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: The property boasts a charming outdoor space with a well-maintained garden and barbecue area, ideal for entertaining guests in a tranquil setting. Condition: Overall excellent, with minor wear in some areas.
The valuation. The asking price of €899,500 sits €301,630 (33.5%) above its fair value of €597,870, signaling that the property is overpriced. This discrepancy suggests caution for potential investors assessing the long-term viability of this investment.
Fair value modelled at €597,870 from the area baseline, adjusted for condition and location. Asking €899,500 sits €301,630 (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 74 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 80 · 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 +€6,992 + location +€47,792 = modelled fair value of €597,870 (€3,340/m²), a €301,630 (33.5%) gap versus the €899,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 8936d3 | Subject | €899,500 | €5,025 | — | 74 | 72 |
| Albufeira e Olhos de Água · 25f8ad | Active | €899,500 | €5,025 | 0% | 80 | 71 |
| rua Júlio Diniz S / N | Active | €1,080,000 | €5,870 | 16.8% | 70 | 64 |
| Albufeira e Olhos de Água · 090272 | Active | €750,000 | €4,167 | 17.1% | 70 | 71 |
| rua 25 de Abril, 50 | Active | €695,000 | €3,035 | 39.6% | 75 | 71 |
| Median comp | €824,750 | €4,596 | 8.5% | 73 | 71 |
Short-term vacation rental The current listing price of €899,500 is significantly higher than the fair value of €597,870, indicating the property is overpriced by 33.5%. Given the gross yield of 3.9%, potential returns in the short-term rental market may not justify this premium pricing. Long-term rental With a fair value gap of 33.5%, the property’s listed price of €899,500 does not align with its valuation of €597,870, suggesting it is overpriced. The current condition rating of 78/100 and neighborhood rating of 72/100 may limit its appeal to long-term tenants at this price point. Buy-and-hold At €899,500, the property is overpriced compared to its fair value of €597,870, representing a 33.5% discrepancy. The potential for appreciation in a tourist-heavy area like Algarve is overshadowed by the high initial investment required to acquire this property.
Economic volatility risk With an economic stability score of 70/100, there is a moderate risk of fluctuations in the local economy impacting property values and rental demand. Tenant turnover risk A tenant stability score of 60/100 indicates a higher likelihood of tenant turnover, potentially leading to increased vacancy rates and associated costs.
