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, 4-bathroom villa of 304 m², built in 2008, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a heated swimming pool with a heat pump and cover, along with impressive sea views from the balconies of both first-floor bedrooms.
The valuation. The asking price of €1,450,000 is significantly above its fair value of €1,037,812, indicating a disparity of €412,188 (28.4%). This property is considered overpriced and not a favorable investment opportunity.
Fair value modelled at €1,037,812 from the area baseline, adjusted for condition and location. Asking €1,450,000 sits €412,188 (28.4%) above — overpriced versus fair value.
Asking €1,450,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €922,336 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 (Condition 90 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 70 · Amenities 75 · Economic 60 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €922,336 + condition +€38,000 + location +€77,476 = modelled fair value of €1,037,812 (€3,414/m²), a €412,188 (28.4%) gap versus the €1,450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · f3627e | Subject | €1,450,000 | €4,770 | — | 90 | 71 |
| Albufeira e Olhos de Água · 4bbf71 | Active | €950,000 | €9,500 | 99.2% | 80 | 73 |
| estrada do Castelo, 132A | Active | €1,340,000 | €3,490 | 26.8% | 80 | 73 |
| Albufeira e Olhos de Água · 00199e | Active | €825,000 | €3,173 | 33.5% | 74 | 72 |
| Guia · 956aac | Active | €2,500,000 | €5,774 | 21.0% | 88 | 67 |
| Median comp | €1,145,000 | €4,632 | 2.9% | 80 | 73 |
Long-term rental The property offers a gross yield of only 1.8%, indicating that it may not provide a competitive return for long-term rental investors, especially given the overpriced status. Furthermore, reliance on seasonal employment patterns within the neighborhood could lead to inconsistent rental income and tenant quality. Short-term vacation rental While the villa is located in a tourist-heavy area of Albufeira, its 28.4% gap from fair value highlights that it is overpriced for short-term rental investment. This could significantly affect the investor's ability to achieve desirable occupancy rates and revenue during off-peak seasons. Buy-and-hold Acquiring this property for a buy-and-hold strategy may not be advisable, given its fair value assessment and significant overpricing. The combination of a low yield and reliance on a volatile tourism market suggests that long-term appreciation may not justify the high upfront investment. Not ideal for: The villa is unsuitable for student housing due to the primarily seasonal nature of demand in the area. Additionally, its location and price make it impractical for the luxury market and industrial investments, as these segments require distinct strategies and pricing dynamics.
Economic Downturn Risk The property has an economic stability score of 60/100, indicating potential vulnerability to economic downturns that could affect rental income and property value.
