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.
5-bedroom, 6-bathroom villa of 650 m², built in 1992, energy rating D. Located on caminho do Banco, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa boasts an expansive 10,000 m² of landscaped grounds, featuring a private borehole for ecological gardening and an integrated pool designed to blend seamlessly with the natural surroundings.
The valuation. The asking price of €4,500,000 is significantly above the fair value of €2,242,672, making the property overpriced by €2,257,328 (50.2%). Such a discrepancy raises concerns for potential investors. Buy-to-flip angle. The strategy here would focus on redesigning or staging the villa to enhance its market appeal, aiming for a quick resale at a higher price in a region driven by tourism demand. Buy-to-let angle. By leveraging its proximity to the Algarve coast, the property could be utilized for short-term vacation rentals, generating an estimated gross yield of 2%, approximately €7,500 per month in rental income.
Fair value modelled at €2,242,672 from the area baseline, adjusted for condition and location. Asking €4,500,000 sits €2,257,328 (50.2%) above — overpriced versus fair value.
Asking €4,500,000 versus the caminho do Banco area baseline of €2,259,400 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 80 · Materials 87 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
caminho do Banco
Area baseline €2,259,400 + condition +€81,250 + location +€189,322 = modelled fair value of €2,242,672 (€3,450/m²), a €2,257,328 (50.2%) gap versus the €4,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho do Banco | Subject | €4,500,000 | €6,923 | — | 80 | 74 |
| Boliqueime · 93743d | Active | €2,400,000 | €4,928 | 28.8% | 78 | 76 |
| Quarteira · 65a752 | Active | €1,410,000 | €8,758 | 26.5% | 78 | 69 |
| rua da Escola Velha | Active | €1,950,000 | €5,769 | 16.7% | 77 | 69 |
| caminho do Millenium | Active | €3,950,000 | €12,540 | 81.1% | 82 | 76 |
| Median comp | €2,175,000 | €7,264 | 4.9% | 78 | 73 |
Short-term vacation rental The 5-bed villa’s listing price of €4,500,000 is significantly above its fair value of €2,242,672, indicating the property is overpriced for short-term vacation rental purposes. With a gross yield of only 2%, the financial return potential does not justify the investment given the current market dynamics. Long-term rental Given the property’s overpriced status, with a value gap of 50.2% compared to its fair value, it presents challenges for long-term rental investors seeking adequate returns. The current gross yield of 2% is unappealing, especially when weighed against the demand fluctuations in a neighbourhood rated 74/100. Buy-and-hold As a buy-and-hold investment, this 5-bed villa does not offer the necessary value justification at a listing price of €4,500,000, given the fair value estimate of €2,242,672. The minimal 2% gross yield and significant price gap indicate that holding this asset may not yield sufficient appreciation in the current market environment.
Economic Dependence Risk With an economic stability score of 65/100, there is a moderate risk of economic downturn affecting tenant demand and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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