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, 2-bathroom house of 252 m², energy rating C. Located Ferreiras parish, Albufeira municipality, Faro district. Noteworthy Features: The semi-detached house includes a versatile multifunctional basement room perfect for leisure or gatherings, alongside an attractive backyard barbecue area with storage. Location Advantage: Situated in a residential area with easy access to schools, shops, and main roads.
The valuation. The asking price of €550,000 is significantly below the fair value of €837,454, by €287,454 or 52.3%. This property is clearly underpriced, presenting a unique opportunity for investors.
Fair value modelled at €837,454 from the area baseline, adjusted for condition and location. Asking €550,000 sits €287,454 (52.3%) below — the upside to fair value.
Asking €550,000 versus the Ferreiras, Albufeira, Faro area baseline of €695,268 (€2,759/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 72 · 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 70). Strong amenities and housing-market momentum support a premium to baseline.
Ferreiras, Albufeira, Faro
Area baseline €695,268 + condition +€8,663 + location +€64,224 = modelled fair value of €837,454 (€3,323/m²), a €287,454 (52.3%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferreiras · 4d465d | Subject | €550,000 | €2,183 | — | 72 | 71 |
| rua das Ferreirinhas S / N | Active | €669,000 | €3,396 | 55.6% | 75 | 73 |
| Ferreiras · cfe03c | Active | €470,000 | €2,994 | 37.2% | 75 | 67 |
| Ferreiras · 6fbc4c | Active | €405,000 | €3,347 | 53.4% | 75 | 72 |
| Albufeira e Olhos de Água · 6fb9c1 | Active | €615,000 | €3,661 | 67.7% | 82 | 75 |
| Median comp | €542,500 | €3,372 | 54.5% | 75 | 73 |
Short-term vacation rental The property presents a strong opportunity for a short-term vacation rental strategy given the 5.5% gross yield and its favorable condition score of 77/100. With the proximity to the Algarve coast further enhancing its appeal to tourists, the listing price of €550,000 compared to a fair value of €837,454 indicates it's significantly underpriced by 52.3%. Long-term rental Implementing a long-term rental strategy appears optimal, supported by the 5.5% gross yield and a good neighborhood score of 71/100. With considerable potential for rental income as the property is listed at €550,000, significantly under the fair value of €837,454, the market conditions favor this approach. Buy-and-hold The buy-and-hold strategy is particularly advantageous in this scenario, capitalizing on the significant gap of 52.3% between the listing price and the fair value. As the property is in a well-rated neighborhood and scores a solid 77/100 in condition, it presents a compelling long-term investment opportunity priced at €550,000 while being undervalued compared to its fair value of €837,454.
Economic Dependence Risk The economic stability score of 65 suggests a moderate reliance on local economic factors which may lead to fluctuations in rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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