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.
5-bedroom, 6-bathroom house of 230 m², built in 1989, energy rating D. Located Guia parish, Albufeira municipality, Faro district. This property features a contemporary kitchen equipped with high-end appliances, and strategically placed glass windows that maximize the unobstructed sea views throughout the living spaces.
The valuation. The asking price of €2,150,000 significantly exceeds the fair value of €785,187, representing a premium of €1,364,813 (63.5%). This property is clearly overpriced according to current market conditions.
Fair value modelled at €785,187 from the area baseline, adjusted for condition and location. Asking €2,150,000 sits €1,364,813 (63.5%) above — overpriced versus fair value.
Asking €2,150,000 versus the Guia, Albufeira, Faro area baseline of €821,330 (€3,571/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 82 · Materials 88 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Guia, Albufeira, Faro
Area baseline €821,330 + condition +€28,750 + location +€58,617 = modelled fair value of €785,187 (€3,414/m²), a €1,364,813 (63.5%) gap versus the €2,150,000 asking price.
Short-term vacation rental The property is overpriced at €2,150,000, significantly above the fair value of €785,187, indicating a 63.5% premium that could deter potential renters. Though the Algarve's tourism economy is robust, the gross yield of 1.3% suggests a low return compared to alternative investment opportunities. Buy-and-hold Investing in this property for long-term appreciation is unwise, as it is currently priced well above its fair value with a staggering 63.5% gap. The 1.3% gross yield further signifies that even holding the property with the expectation of future value growth may not justify the initial investment. Long-term rental Offering this property as a long-term rental may not be a sound strategy since the asking price of €2,150,000 is significantly overvalued against a fair market value of €785,187. The low gross yield of 1.3% implies that the cash flow will be insufficient to cover the extravagant purchase price, limiting overall investment viability.
Economic downturn risk With an economic stability score of 65/100, there is a risk of economic downturn affecting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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