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, 4-bathroom house of 406 m², built in 2009. Located Paderne parish, Albufeira municipality, Faro district. This property features a spacious south-facing living room with a fireplace and a unique covered terrace with a pool, adaptable for seasonal needs.
The valuation. The asking price of €550,000 is significantly above the fair value of €436,975, resulting in an overvaluation of €113,025 or 20.6%. This indicates that the property is overpriced and may not attract potential buyers who seek value.
Fair value modelled at €436,975 from the area baseline, adjusted for condition and location. Asking €550,000 sits €113,025 (20.6%) above — overpriced versus fair value.
Asking €550,000 versus the Paderne, Albufeira, Faro area baseline of €850,570 (€2,095/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 72 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Paderne, Albufeira, Faro
Area baseline €850,570 + condition +€3,172 + location +€24,555 = modelled fair value of €436,975 (€1,076/m²), a €113,025 (20.6%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Paderne · ba5974 | Subject | €550,000 | €1,355 | — | 72 | 65 |
| Paderne · ba583d | Active | €410,000 | €3,596 | 165.5% | 80 | 62 |
| Paderne · 03251b | Active | €510,000 | €3,542 | 161.4% | 67 | 71 |
| Paderne · 49b839 | Active | €575,000 | €3,343 | 146.8% | — | 65 |
| Paderne · 25f5b3 | Active | €270,000 | €4,286 | 216.4% | — | 62 |
| Median comp | €460,000 | €3,569 | 163.5% | 74 | 64 |
Short-term vacation rental The current listing price of €550,000 significantly exceeds the fair value of €436,975, indicating that this investment is overpriced. With a gross yield of 0% and the competitive vacation rental market in the Algarve, this property fails to provide a solid return on investment for short-term rentals. Long-term rental At a listing price of €550,000, this property is overpriced compared to the fair value of €436,975, which detracts from its appeal for long-term rental strategies. The low yield of 0% further emphasizes that this investment will not generate adequate income to justify the costs. Buy-and-hold Given that the property is listed at €550,000 while fair value stands at €436,975, it is clear that this buy-and-hold strategy is not attractive as the property is overpriced. With no expected yield and a lower condition score, holding on to this asset may result in limited appreciation over time.
Economic Vulnerability With an economic stability score of 60/100, there is a significant risk that fluctuations in the local economy could impact tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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