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.
6-bedroom, 5-bathroom house of 384 m², energy rating C. Located on estrada do Castelo, 132A, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property features an independent 60 m² guest house with modern amenities, perfect for family accommodation or generating additional rental income. Outdoor Space: A serene 1,400 m² plot with extensive gardens and a large pool, ideal for relaxation and summer gatherings.
The valuation. The asking price of €1,340,000 is slightly above its fair value of €1,316,041, representing an overpricing of €23,959 (1.8%). This discrepancy indicates that potential investors may face challenges in achieving immediate financial gains.
Fair value modelled at €1,316,041 from the area baseline, adjusted for condition and location. Asking €1,340,000 sits €23,959 (1.8%) above — overpriced versus fair value.
Asking €1,340,000 versus the estrada do Castelo, 132A area baseline of €1,165,056 (€3,034/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
estrada do Castelo, 132A
Area baseline €1,165,056 + condition +€43,800 + location +€107,185 = modelled fair value of €1,316,041 (€3,427/m²), a €23,959 (1.8%) gap versus the €1,340,000 asking price.
Short-term vacation rental This property appears to be overpriced with a listing price of €1,340,000, just 1.8% above its fair value of €1,316,041. Given the 0% gross yield, the potential for short-term vacation rental income does not justify the current pricing. Buy-and-hold Investing in this property as a buy-and-hold strategy seems less appealing due to its fair value of €1,316,041 compared to the listing price of €1,340,000, which indicates an overvaluation. The neighborhood's moderate housing demand suggests that appreciation may not occur swiftly enough to warrant the current price premium. Long-term rental Opting for this property as a long-term rental investment is also questionable, as it is priced at €1,340,000 while the fair value is €1,316,041, marking it as overpriced. With a gross yield of 0%, the expected rental income may not cover the investment cost effectively, leaving little room for returns.
Potential Vacancy Risk The economic stability score of 65/100 indicates a moderate risk of economic downturn, which may lead to increased tenant turnover and vacancy rates, compounded by a tenant stability score of 70/100 suggesting potential instability in tenant retention.
