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 235 m², built in 1984. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Feature: With an expansive garden and potential space for a pool, this villa offers exceptional outdoor leisure opportunities just minutes from renowned beaches like Praia da Galé.
The valuation. The asking price of €585,000 is significantly below the fair value of €709,468, representing a discount of €124,468 (21.3%). This indicates the property is underpriced in the current market. Buy-to-flip angle. With the property needing modern finishes and upgrades, a buy-to-flip strategy could realize considerable returns by renovating and reselling, appealing to buyers seeking properties in a tourist-friendly area. Buy-to-let angle. Estimated rental income of €2,389 per month leads to a gross yield of 4.9%, making it a viable option for long-term rentals given the neighbourhood's tourist appeal and demand for family rentals.
Fair value modelled at €709,468 from the area baseline, adjusted for condition and location. Asking €585,000 sits €124,468 (21.3%) below — the upside to fair value.
Asking €585,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €810,750 (€3,450/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 (Condition 58 · Materials 55 · Room dimensions 57). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 78 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €810,750 + condition -€71,969 + location +€68,447 = modelled fair value of €709,468 (€3,019/m²), a €124,468 (21.3%) gap versus the €585,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 9570dd | Subject | €585,000 | €2,489 | — | 58 | 74 |
| Albufeira e Olhos de Água · 96c6ca | Active | €849,000 | €3,949 | 58.6% | 72 | 74 |
| Albufeira e Olhos de Água · 82c7e1 | Active | €420,000 | €1,944 | 21.9% | 70 | 73 |
| estrada das Sesmarias, 1 | Active | €349,000 | €4,205 | 68.9% | 65 | 70 |
| Albufeira e Olhos de Água · 96c6cd | Active | €880,000 | €4,632 | 86.1% | 73 | 70 |
| Median comp | €634,500 | €4,077 | 63.8% | 71 | 72 |
Short-term vacation rental Given the property's proximity to tourist attractions in the Algarve, it is well-positioned to capitalize on the growing demand for short-term vacation rentals in the region. The competitive gross yield of 4.9% indicates strong potential for favorable returns on investment in this vibrant market. Long-term rental With a fair value significantly above the listing price, the property presents an appealing option for long-term rental investments, attracting stable occupancy rates in a desirable neighborhood. The tenant quality rating of 74/100 suggests a robust demographic that supports consistent rental income. Family rental The property's substantial size of 235m² and its good neighborhood score make it an ideal choice for families seeking comfortable and spacious living accommodations. The favorable fair value suggests that this property can provide a quality home while still being competitively priced in the market.
Economic downturn risk A moderate economic stability score of 65/100 indicates potential vulnerability to market fluctuations, which could affect rental income and occupancy rates.
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