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, 2-bathroom house of 190 m², built in 1985. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property boasts a substantial 3,200 m² plot that offers unparalleled privacy and tranquility while being just minutes away from the Algarve’s stunning beaches.
The valuation. The asking price of €880,000 is significantly above the fair value of €620,202, indicating it is overpriced by €259,798 (29.5%). This discrepancy suggests a cautious approach for potential investors.
Fair value modelled at €620,202 from the area baseline, adjusted for condition and location. Asking €880,000 sits €259,798 (29.5%) above — overpriced versus fair value.
Asking €880,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €576,460 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 (Condition 73 · Materials 76 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €576,460 + condition -€2,375 + location +€46,117 = modelled fair value of €620,202 (€3,264/m²), a €259,798 (29.5%) gap versus the €880,000 asking price.
Short-term vacation rental The property is overpriced, with a fair value of €620,202 compared to its listing price of €880,000, indicating a 29.5% gap from fair value. Additionally, the yield of 1.5% is insufficient to justify the high asking price in the competitive vacation rental market of Albufeira. Buy-and-hold Investing in this property as a long-term buy-and-hold is not advisable, given that it is priced 29.5% above fair value and offers a low yield of 1.5%. The combination of high acquisition costs and moderate neighbourhood ratings further complicates the potential for healthy long-term returns. Family rental Acquiring this property for family rental purposes is not a sound strategy, as its current listing is overpriced by 29.5% against fair value. With a gross yield of only 1.5% and moderate ratings for both condition and neighbourhood, the investment does not present solid rental income potential for families in the area.
Economic Vulnerability The property may face financial challenges due to its lower economic stability score of 55/100, indicating potential risks in tenant retention and rental income stability.
