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 90 m², built in 1987. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property offers a large plot of 950 m², a rare find for independent villas in a sought-after residential area of Vale Navio. Condition Notes: The interior is extensively damaged, making immediate habitation unfeasible.
The valuation. The asking price of €550,000 is significantly above the fair value of €212,714, with an excess of €337,286 (61.3%). This property is priced as overpriced according to market standards.
Fair value modelled at €212,714 from the area baseline, adjusted for condition and location. Asking €550,000 sits €337,286 (61.3%) above — overpriced versus fair value.
Asking €550,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €273,060 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 15/100 (Condition 10 · Materials 20 · Room dimensions 30). Below-median condition lowers fair value versus a renovated baseline unit. Full condition report →
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €273,060 + condition -€84,375 + location +€24,029 = modelled fair value of €212,714 (€2,363/m²), a €337,286 (61.3%) gap versus the €550,000 asking price.
Short-term vacation rental The property is overpriced with a listing price of €550,000, significantly exceeding its fair value of €212,714, presenting a gap of 61.3%. At a 3.8% gross yield, the expected return does not justify the investment in a market influenced by tourism. Buy-and-hold With the property valued at €212,714 but listed at €550,000, the 61.3% gap indicates that this investment is not well positioned for long-term value appreciation. The 15/100 condition rating further detracts from the investment case, suggesting high future capital expenditures could arise. Family rental Although the neighbourhood has a decent rating of 72/100, the significant overpricing of the property at €550,000 versus its fair value of €212,714 reduces its attractiveness as a family rental investment. The low gross yield of 3.8% and poor condition rating imply that the potential rental income would not align with the high initial investment. Student housing This property is not ideal for student housing due to its overpricing at €550,000 against a fair value of €212,714. The unattractive gross yield and condition further complicate its viability for this market segment.
Economic downturn risk The economic stability score of 65/100 suggests potential vulnerabilities that could affect rental income and property values in the event of an economic downturn.
