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, 3-bathroom house of 185 m², built in 2008, energy rating C. Located Paderne parish, Albufeira municipality, Faro district. Noteworthy Features: The property includes a private terrace for outdoor entertaining and is part of a gated community with access to children's play areas and landscaped gardens.
The valuation. The asking price of €395,000 is significantly below the fair value of €730,755, representing a discount of €335,755 (85.0%). This property is notably underpriced in the current market, presenting an attractive investment opportunity.
Fair value modelled at €730,755 from the area baseline, adjusted for condition and location. Asking €395,000 sits €335,755 (85.0%) below — the upside to fair value.
Asking €395,000 versus the Paderne, Albufeira, Faro area baseline of €748,510 (€4,046/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 59/100 (Condition 55 · Materials 60 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 60/100 (Housing Market 70 · Amenities 60 · Economic 50 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Paderne, Albufeira, Faro
Area baseline €748,510 + condition -€47,695 + location +€29,940 = modelled fair value of €730,755 (€3,950/m²), a €335,755 (85.0%) gap versus the €395,000 asking price.
Short-term vacation rental The property in Paderne presents a compelling opportunity for short-term vacation rentals given its 85% gap from fair value and a gross yield of 5.6%. Its location in the Algarve positions it favorably to attract a consistent stream of tourists year-round. Buy-and-hold Investing in this house for a buy-and-hold strategy is prudent, considering its significant undervaluation relative to fair market value, which stands at €730,755. As the housing market in Algarve continues to thrive, this property can likely appreciate further over time while generating passive income. Family rental This 3-bed house is well-suited for family rental, especially given the fair value recognition that suggests robust demand in the area. The decent condition rating of 59/100 and a neighborhood score of 60/100 indicate it can provide families with a comfortable living environment, enhancing its rental appeal.
Economic volatility risk With an economic stability score of 50/100, there is a significant risk that economic downturns could negatively impact rental income and property value.**
