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.
2-bedroom, 2-bathroom house of 93 m², built in 2011, energy rating B. Located Guia parish, Albufeira municipality, Faro district. This property features a spacious terrace ideal for outdoor entertaining, while its bright south-facing garden offers a perfect spot for relaxation and leisure.
The valuation. The asking price of €475,000 sits significantly above the fair value of €312,916, resulting in an overpricing of €162,084 (34.1%). This price difference indicates the property is not a sound investment at this asking price.
Fair value modelled at €312,916 from the area baseline, adjusted for condition and location. Asking €475,000 sits €162,084 (34.1%) above — overpriced versus fair value.
Asking €475,000 versus the Guia, Albufeira, Faro area baseline of €338,706 (€3,642/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 80 · Materials 78 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Guia, Albufeira, Faro
Area baseline €338,706 + condition +€4,795 + location +€25,959 = modelled fair value of €312,916 (€3,365/m²), a €162,084 (34.1%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Guia · 735628 | Subject | €475,000 | €5,108 | — | 80 | 73 |
| Albufeira e Olhos de Água · 49b8b4 | Active | €620,000 | €4,276 | 16.3% | 80 | 65 |
| estrada das Sesmarias, 1 | Active | €349,000 | €4,205 | 17.7% | 65 | 70 |
| Albufeira e Olhos de Água · 96c6cd | Active | €880,000 | €4,632 | 9.3% | 73 | 70 |
| Albufeira e Olhos de Água · 1e66a5 | Active | €385,000 | €5,000 | 2.1% | 75 | 70 |
| Median comp | €502,500 | €4,454 | 12.8% | 74 | 70 |
Short-term vacation rental The property in Guia is overpriced, with a listing price of €475,000 compared to a fair value of €312,916, indicating a substantial gap of 34.1%. While the 4.5% gross yield may appeal to some investors, the condition and location ratings suggest that it may not be the optimal choice for a short-term vacation rental market. Buy-and-hold Investing in this property as a buy-and-hold strategy is likely unwise, given that it is overpriced with a fair value considerably lower than the asking price. The anticipated yield of 4.5% does not compensate for the heightened risk of entering a market where the property is 34.1% above fair value. Long-term rental Although long-term rental might seem feasible, the property is fundamentally overpriced at €475,000, which is 34.1% above the fair value of €312,916. The yield of 4.5% does not sufficiently mitigate the risks associated with investing in a property that has not been accurately priced in the current market context.
Economic Vulnerability With an economic stability score of 65/100, there may be increased risks related to market fluctuations that could impact rental income and property value negatively. Tenant Stability Risk The tenant stability score of 70/100 indicates potential concerns regarding tenant retention and consistency, which may influence overall cash flow.
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