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, 5-bathroom house of 469 m², built in 2006, energy rating D. Located on rua Teixeira de Pascoais, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The villa includes a spacious outdoor barbecue area seamlessly connected to the kitchen, enhancing the property's entertainment potential and outdoor living experience. Unique Aspect: All five en-suite bedrooms boast private balconies that ensure both comfort and privacy. Highlights: Set in a prime location, this residence offers a perfect blend of tranquility and convenience, with easy access to local amenities and attractions.
The valuation. The asking price of €1,200,000 is significantly below fair value of €1,570,150, suggesting the property is subvalued by €370,150 (30.8%). This indicates an opportunity for a solid investment. Buy-to-flip angle. Adopting a buy-to-flip strategy could yield substantial returns by renovating and then reselling the property, leveraging its high-quality finishes to appeal to buyers in the competitive Algarve market. Buy-to-let angle. For rental income, the estimated gross yield of 3.2% equates to approximately €3,200 per month, making it a feasible option for both short-term vacation rentals and long-term leases in a tourist-friendly location like Albufeira.
Fair value modelled at €1,570,150 from the area baseline, adjusted for condition and location. Asking €1,200,000 sits €370,150 (30.8%) below — the upside to fair value.
Asking €1,200,000 versus the rua Teixeira de Pascoais area baseline of €1,422,946 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 70 · Amenities 80 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua Teixeira de Pascoais
Area baseline €1,422,946 + condition +€21,984 + location +€125,219 = modelled fair value of €1,570,150 (€3,348/m²), a €370,150 (30.8%) gap versus the €1,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Teixeira de Pascoais | Subject | €1,200,000 | €2,559 | — | 75 | 72 |
| Albufeira e Olhos de Água · ba5a44 | Active | €650,000 | €2,955 | 15.5% | 70 | 67 |
| rua Ilha de São Miguel | Active | €1,670,000 | €2,456 | 4.0% | 80 | 69 |
| Albufeira e Olhos de Água · 25f8ad | Active | €899,500 | €5,025 | 96.4% | 80 | 71 |
| Albufeira e Olhos de Água · 8936d3 | Active | €899,500 | €5,025 | 96.4% | 74 | 72 |
| Median comp | €899,500 | €3,990 | 55.9% | 77 | 70 |
Short-term vacation rental The property is ideally suited for short-term vacation rentals given its location in the popular tourist destination of Algarve, where seasonal demand remains high. With a fair value gap of 30.8%, this investment offers substantial potential for capital appreciation. Long-term rental With a reasonable gross yield of 3.2%, this property can provide a steady income stream as a long-term rental in a stable market driven by tourism. The favorable neighborhood score of 72/100 indicates a strong demand for rental properties, making it an attractive choice for investors. Buy-and-hold Investing in this property allows for long-term appreciation, particularly as the Albufeira e Olhos de Água area continues to flourish in the tourism sector. Given the current gap versus fair value, holding this asset could yield significant returns over time with ongoing demand. Not ideal for industrial investment This property is not suited for industrial investment due to its residential nature and location in a predominantly tourist area, which isn’t conducive to industrial activities. The proximity to amenities and the housing market dynamics further reinforce this unsuitability. Not ideal for student housing This property does not fit the profile for student housing as the demand in the area is driven by tourism rather than a university or college population. The lack of nearby educational institutions diminishes the attractiveness of this strategy for this particular investment.
Economic Vulnerability The economic stability score of 55 indicates a potential risk of economic downturns affecting rental income and property values.
