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, 4-bathroom villa of 325 m², built in 2002, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Feature: This villa boasts two expansive rooftop terraces that offer stunning views over the pool area, enhancing outdoor living and entertaining possibilities.
The valuation. The asking price of €1,999,990 sits significantly above the fair value of €1,090,088, presenting an overvaluation of €909,902 (45.5%). This disparity suggests that the property is overpriced and may not represent a sound investment. Buy-to-flip angle. A buy-to-flip strategy would focus on cosmetic upgrades to enhance appeal quickly for resale in the thriving Algarve market, targeting a resale price that could leverage the property's luxury finishes despite its current overvaluation. Buy-to-let angle. The rental income strategy would involve positioning the villa for short-term vacation rentals, capitalizing on the Algarve’s high tourist activity, albeit the gross yield of 1.9% reflects a conservative income potential at approximately €3,167 per month.
Fair value modelled at €1,090,088 from the area baseline, adjusted for condition and location. Asking €1,999,990 sits €909,902 (45.5%) above — overpriced versus fair value.
Asking €1,999,990 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €1,129,700 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 73 · Materials 80 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €1,129,700 + condition +€17,266 + location +€86,772 = modelled fair value of €1,090,088 (€3,354/m²), a €909,902 (45.5%) gap versus the €1,999,990 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 911780 | Subject | €1,999,990 | €6,154 | — | 73 | 72 |
| rua Fernando Pessoa, 84 | Active | €695,000 | €5,792 | 5.9% | 80 | 70 |
| Guia · 956aac | Active | €2,500,000 | €5,774 | 6.2% | 88 | 67 |
| Guia · 6fb989 | Active | €2,150,000 | €9,348 | 51.9% | 82 | 71 |
| Guia · 6c7c27 | Active | €2,700,000 | €17,089 | 177.7% | 85 | 72 |
| Median comp | €2,325,000 | €7,570 | 23.0% | 84 | 71 |
Long-term rental The 5-bed villa in Albufeira e Olhos de Água is overpriced at €1,999,990, significantly exceeding its fair value of €1,090,088 by 45.5%. Given a low gross yield of 1.9%, this property does not align with the typical financial metrics favorable for long-term rental investments. Short-term vacation rental With a listing price far above the fair value, the 5-bed villa's appeal for short-term vacation rentals is undermined, resulting in a 45.5% gap that impacts potential profitability. The modest yield of 1.9% raises concerns regarding the viability of investing in this property for the thriving tourist market in the Algarve. Family rental Although family rentals often seek spacious accommodations, the 5-bed villa is overpriced, with a valuation gap of 45.5% compared to its fair value of €1,090,088. The relatively low condition score of 78/100 may also deter families looking for quality housing at a reasonable price.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns affecting property value and tenant 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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