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.
2-bedroom, 3-bathroom house of 114 m², energy rating D. Located Paderne parish, Albufeira municipality, Faro district. Noteworthy Features: This villa boasts a large upper terrace complete with a barbecue area and dedicated storage, enhancing outdoor living and leisure opportunities in a serene countryside setting.
The valuation. The asking price of €410,000 is significantly above the fair value of €126,484, indicating an overvaluation of €283,516 (69.2%). Investors should be cautious as this property does not represent a favorable investment opportunity.
Fair value modelled at €126,484 from the area baseline, adjusted for condition and location. Asking €410,000 sits €283,516 (69.2%) above — overpriced versus fair value.
Asking €410,000 versus the Paderne, Albufeira, Faro area baseline of €238,830 (€2,095/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 80 · Materials 79 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 50 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Paderne, Albufeira, Faro
Area baseline €238,830 + condition +€6,056 + location +€5,516 = modelled fair value of €126,484 (€1,110/m²), a €283,516 (69.2%) gap versus the €410,000 asking price.
Long-term rental The property is overpriced at €410,000 compared to a fair value of €126,484, making it a questionable long-term rental investment with a gross yield of only 3.8%. With a neighborhood score of 62/100 indicating average tenant quality and amenities, the high price diminishes the potential for consistent rental returns. Short-term vacation rental While the Algarve region is popular for tourism, the 69.2% gap above fair value makes this property overpriced for short-term vacation rental purposes, which generally require higher initial investments for maximized returns. The 3.8% gross yield further indicates that this attractive tourism market may not compensate for the inflated asking price. Buy-and-hold This property’s significant overvaluation at €410,000, compared to a fair value of €126,484, signals it is unsuitable for a buy-and-hold strategy, as appreciation potential is limited when starting from such a high price point. The property’s average condition rating of 78/100 offers little incentive to retain an overpriced asset for the long term.
Economic Volatility Risk The property faces economic volatility due to both the economic stability score of 60/100 and tenant stability score of 60/100, indicating a potential for fluctuating rental income and increased vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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