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 house of 123 m², built in 1900, energy rating B. Located on rua 5 de Outubro, 39, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Outdoor Features: The property boasts a covered lounge area with a bar, ideal for entertaining, surrounded by well-established fruit trees on a large flat plot. Additional Amenities: The eco-friendly solar boiler and photovoltaic panels significantly reduce energy costs.
The valuation. The asking price of €730,000 significantly exceeds the fair value of €406,778, indicating that the property is overpriced by €323,222 (44.3%). This price discrepancy highlights the need for negotiation or reconsideration of potential investment.
Fair value modelled at €406,778 from the area baseline, adjusted for condition and location. Asking €730,000 sits €323,222 (44.3%) above — overpriced versus fair value.
Asking €730,000 versus the rua 5 de Outubro, 39 area baseline of €427,548 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 80 · Amenities 70 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua 5 de Outubro, 39
Area baseline €427,548 + condition +€6,727 + location +€26,869 = modelled fair value of €406,778 (€3,307/m²), a €323,222 (44.3%) gap versus the €730,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua 5 de Outubro, 39 | Subject | €730,000 | €5,935 | — | 75 | 68 |
| caminho do Poço da Ataboeira | Active | €685,000 | €4,628 | 22.0% | 80 | 72 |
| Albufeira e Olhos de Água · 1e6471 | Active | €1,395,000 | €7,500 | 26.4% | 80 | 73 |
| avenida dos Descobrimentos | Active | €695,000 | €4,696 | 20.9% | 75 | 72 |
| rua Sir Cliff Richard | Active | €2,000,000 | €8,511 | 43.4% | 88 | 75 |
| Median comp | €1,045,000 | €6,098 | 2.7% | 80 | 73 |
Short-term vacation rental The property is overpriced at €730,000 compared to a fair value of €406,778, which presents a concerning gap of 44.3%. Given its gross yield of only 3.5%, the investment appears unlikely to generate sufficient returns in the competitive vacation rental market. Buy-and-hold At a listing price of €730,000, this property does not represent a sound buy-and-hold investment, given the fair value estimate of €406,778. The local economic reliance on tourism, compounded by the high entry price and lower-than-ideal return potential, suggests better alternatives exist in the market. Long-term rental With an asking price of €730,000, this property is significantly above fair market valuation and poses challenges for achieving a viable long-term rental strategy. The gross yield of 3.5% does not compensate for the elevated purchase price, making it a less favorable option for long-term investment in the area.
Economic Volatility With an economic stability score of 55/100, the property is at risk of declining demand and fluctuating rental income due to unstable market conditions.**
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