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 184 m², built in 1992, energy rating D. Located Guia parish, Albufeira municipality, Faro district. Unique Feature: This property provides direct access to a garden dining area beneath a bougainvillea, enhancing outdoor living and entertaining options. Additional Note: Its proximity to Salgados Natural Reserve offers exceptional bird-watching opportunities.
The valuation. The asking price of €490,000 sits €85,143 below the fair value of €575,143, indicating that the property is underpriced by 17.4%. This presents an attractive investment opportunity in a desirable location. Buy-to-flip angle. The buy-to-flip strategy could leverage the €85,143 equity margin by updating dated fixtures and finishes to appeal to homebuyers, potentially maximizing resale value after a strategic renovation. Buy-to-let angle. With an estimated gross yield of 3.8% and average rental income of €1,552/month, the property can serve as a reliable long-term rental investment, capitalizing on its proximity to Algarve amenities.
Fair value modelled at €575,143 from the area baseline, adjusted for condition and location. Asking €490,000 sits €85,143 (17.4%) below — the upside to fair value.
Asking €490,000 versus the Guia, Albufeira, Faro area baseline of €558,256 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 65 · Materials 75 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 70 · Economic 60 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Guia, Albufeira, Faro
Area baseline €558,256 + condition -€14,375 + location +€31,262 = modelled fair value of €575,143 (€3,126/m²), a €85,143 (17.4%) gap versus the €490,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Guia · 261f97 | Subject | €490,000 | €2,663 | — | 65 | 64 |
| Guia · 956c07 | Active | €740,000 | €1,616 | 39.3% | 75 | 70 |
| Guia · f36488 | Active | €480,000 | €2,807 | 5.4% | 72 | 64 |
| rua do Catavento | Active | €1,670,000 | €4,758 | 78.7% | 75 | 73 |
| Guia · 0239d9 | Active | €995,000 | €4,523 | 69.8% | 85 | 76 |
| Median comp | €867,500 | €3,665 | 37.6% | 75 | 72 |
Short-term vacation rental This property, listed at €490,000, is positioned well for short-term vacation rentals given its proximity to Algarve tourist amenities, allowing for a potential yield of 3.8% gross. With a fair value of €575,143 indicating a 17.4% gap, it presents an appealing opportunity for investors in the thriving vacation rental market. Long-term rental With a fair value of €575,143 and a listing at €490,000, the property could generate sustainable long-term rental income, supported by a reasonable yield of 3.8%. The decent condition rating of 70/100 and the stable neighborhood score of 64/100 further enhance its attractiveness for long-term leases. Buy-and-hold The investment at €490,000, compared to its fair value of €575,143, indicates a sound buy-and-hold strategy, benefiting from a healthy 17.4% premium potential. The combination of a stable neighborhood and fair yield strengthens the case for long-term appreciation in this desirable location. Not ideal for student housing Given the general neighborhood quality, this property does not cater well to the student housing market, which typically requires proximity to educational institutions and vibrant local amenities. Thus, its listing price and location align poorly with this investment strategy. Not ideal for luxury market The property's valuation and neighborhood conditions suggest that it would not attract the luxury market, as it lacks unique high-end features that often characterize such investments. Therefore, potential returns from this segment may not justify the investment in this property. Not ideal for industrial investments This residential property is not suitable for industrial investments, which would require a different property type altogether. The characteristics of this listing are focused on residential use rather than commercial or industrial viability.
Tenant turnover risk The tenant stability score of 55/100 indicates a higher likelihood of tenant turnover, which could lead to increased vacancy rates and loss of rental income.
