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, 3-bathroom villa of 190 m², built in 1988, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property offers the unique advantage of adjacent land suitable for building another house, enhancing investment potential in a prime Algarve location with excellent amenities.
The valuation. The asking price of €975,000 significantly exceeds fair value, reflected in a disparity of €330,979 (33.9%). This property is ultimately deemed overpriced. Buy-to-flip angle. A buy-to-flip strategy could prove challenging, given the high acquisition cost and market conditions. Resale within a short timeframe may yield limited profits or even losses. Buy-to-let angle. With an estimated gross yield of 2.7% at €2,194/month, this property can serve as a long-term rental. However, its reliance on tourism may affect rental demand and stability over time.
Fair value modelled at €644,021 from the area baseline, adjusted for condition and location. Asking €975,000 sits €330,979 (33.9%) above — overpriced versus fair value.
Asking €975,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €660,440 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 82 · Materials 88 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 75 · Amenities 65 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €660,440 + condition +€23,750 + location +€43,811 = modelled fair value of €644,021 (€3,390/m²), a €330,979 (33.9%) gap versus the €975,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 483c81 | Subject | €975,000 | €5,132 | — | 82 | 69 |
| caminho do Poço da Ataboeira | Active | €685,000 | €4,628 | 9.8% | 80 | 72 |
| Albufeira e Olhos de Água · 1e6471 | Active | €1,395,000 | €7,500 | 46.2% | 80 | 73 |
| avenida dos Descobrimentos | Active | €695,000 | €4,696 | 8.5% | 75 | 72 |
| Albufeira e Olhos de Água · 388fa9 | Active | €1,299,000 | €4,811 | 6.2% | 90 | 74 |
| Median comp | €997,000 | €4,754 | 7.4% | 80 | 73 |
Long-term rental This property is overpriced, with a fair value of €644,021 compared to its listing of €975,000, indicating a 33.9% gap. With a gross yield of only 2.7%, the potential returns do not justify the high asking price in this tourism-dependent region. Short-term vacation rental As this villa is priced significantly above its fair value, it is not an ideal candidate for short-term vacation rentals despite the tourism reliance. The 2.7% gross yield suggests that even with occupancy, the investment returns are not compelling given the current market conditions. Buy-and-hold The investment strategy of buy-and-hold is undermined by the current listing price of €975,000 being considerably above the fair value of €644,021. Holding this property in the current inflated market may lead to reduced financial performance due to the unfavorable yield and neighborhood dynamics.
Limited economic growth risk With an economic stability score of 60/100, there's a moderate risk of insufficient economic growth impacting property value and rental demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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