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.
4-bedroom, 3-bathroom house of 410 m², energy rating B. Located on rua Amato Lusitano, 5, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property features a versatile outdoor leisure zone with a BBQ area and shaded living space, perfect for entertaining while enjoying the Albufeira climate.
The valuation. The asking price of €495,000 is significantly below the fair value of €1,368,290, making the property subvalorizada at a striking 176.4% discount. This presents an exceptional opportunity for potential investors.
Fair value modelled at €1,368,290 from the area baseline, adjusted for condition and location. Asking €495,000 sits €873,290 (176.4%) below — the upside to fair value.
Asking €495,000 versus the rua Amato Lusitano, 5 area baseline of €1,425,160 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 74 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Amato Lusitano, 5
Area baseline €1,425,160 + condition +€19,859 + location +€104,491 = modelled fair value of €1,368,290 (€3,337/m²), a €873,290 (176.4%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Amato Lusitano, 5 | Subject | €495,000 | €1,207 | — | 74 | 71 |
| rua Leonardo Coimbra, 2C | Active | €720,000 | €2,202 | 82.4% | 82 | 66 |
| Albufeira e Olhos de Água · 0dcf1a | Active | €750,000 | €833 | 31.0% | 75 | 71 |
| rua do Castelinho, 1 | Active | €649,000 | €1,997 | 65.4% | 72 | 72 |
| rua das Ferreirinhas S / N | Active | €669,000 | €3,396 | 181.3% | 75 | 73 |
| Median comp | €694,500 | €2,100 | 73.9% | 75 | 72 |
Short-term vacation rental The property is situated in a tourist-focused area of Albufeira, making it ideal for short-term vacation rentals as it can capitalize on the 8.1% gross yield. With a significant gap to fair value at 176.4%, this investment has potential for appreciation as tourism in the Algarve continues to thrive. Long-term rental This property offers a strong gross yield of 8.1%, which is attractive in a neighbourhood that has a decent tenant quality rating of 71/100. With the fair value significantly higher at €1,368,290, holding this property for long-term rental could yield substantial returns as the market appreciates. Buy-and-hold Acquiring this property presents an opportunity for a buy-and-hold strategy, leveraging its location in a tourist-heavy region to benefit from both rental income and future capital appreciation. Given that the fair value is well above the listing price, investors can look forward to long-term value growth in Albufeira. Not ideal for student housing The property is not suited for student housing due to its location in a tourist-centric area rather than a university hub. This mismatch limits its potential to attract a stable student rental demographic. Not ideal for luxury market Given the current condition ranking of 78/100, this property does not align with luxury market expectations, which typically demand higher standards and finishes. Therefore, it may struggle to compete in that segment of the real estate market. Not ideal for industrial investment The location in Albufeira is primarily residential and tourism-focused, making it unsuitable for industrial investment. The economic landscape and zoning regulations do not support industrial uses in this area, presenting a mismatch between property type and economic activity.
Economic Volatility The economic stability score of 65 suggests potential fluctuations in market conditions that could impact rental income 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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