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.
4-bedroom, 5-bathroom villa of 433 m², built in 2004, energy rating E. Located Guia parish, Albufeira municipality, Faro district. Noteworthy Feature: This villa includes a stunning infinity pool with a waterfall and a salt electrolysis treatment system, enhancing relaxation and leisure in the outdoor space.
The valuation. The asking price of €2,500,000 is significantly above the fair value of €1,457,180, indicating an excess of €1,042,820 or 41.7%. This property is clearly overpriced in the current market conditions.
Fair value modelled at €1,457,180 from the area baseline, adjusted for condition and location. Asking €2,500,000 sits €1,042,820 (41.7%) above — overpriced versus fair value.
Asking €2,500,000 versus the Guia, Albufeira, Faro area baseline of €1,313,722 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 90/100 (Condition 88 · Materials 90 · Room dimensions 90). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 75 · Amenities 60 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Guia, Albufeira, Faro
Area baseline €1,313,722 + condition +€54,125 + location +€89,333 = modelled fair value of €1,457,180 (€3,365/m²), a €1,042,820 (41.7%) gap versus the €2,500,000 asking price.
Short-term vacation rental This property is overpriced by 41.7% compared to its fair value of €1,457,180, reflecting an unattractive yield of only 1.6%. Given the seasonal nature of tourism in the Algarve, such a premium price may limit the potential for return on investment in the short-term rental market. Buy-and-hold While the neighbourhood holds some appeal with a condition rating of 90/100, the property is overpriced at €2,500,000, and the expected long-term appreciation may not justify this investment. The gap between the listing price and fair value suggests that holding this asset may not provide adequate financial benefits over time. Value-add renovation With a current valuation significantly above its fair value, exploring value-add renovation strategies may not provide the return on investment necessary to justify this property’s acquisition cost. Furthermore, the general economic instability tied to seasonal employment in the area could make it risky to invest heavily into improvements at this price point.
Economic and Tenant Instability Risk: With both the economic stability and tenant stability scores at 65/100, there is a notable risk of potential fluctuations in rental income due to possible tenant turnover and economic downturns affecting occupancy rates.
