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, 4-bathroom house of 268 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property offers a multifunctional leisure basement that can be customized as a games room, gym, or cinema, enhancing its entertainment potential for families. Location Advantage: Situated near Albufeira Marina, residents enjoy quick access to beaches, restaurants, and shops while maintaining a tranquil living environment.
The valuation. The asking price of €1,080,000 is significantly above its fair value of €884,247, indicating an overshoot of €195,753 (18.1%). This price point categorizes the property as overpriced, warranting careful consideration before investment.
Fair value modelled at €884,247 from the area baseline, adjusted for condition and location. Asking €1,080,000 sits €195,753 (18.1%) above — overpriced versus fair value.
Asking €1,080,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €931,568 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 71 · Materials 77 · Room dimensions 78). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 65 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Albufeira e Olhos de Água, Albufeira, Faro
Area baseline €931,568 + condition -€419 + location +€71,554 = modelled fair value of €884,247 (€3,299/m²), a €195,753 (18.1%) gap versus the €1,080,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · be94bd | Subject | €1,080,000 | €4,030 | — | 71 | 72 |
| Albufeira e Olhos de Água · 28b7df | Active | €590,000 | €3,471 | 13.9% | 75 | 72 |
| avenida das Ilhas, 17 | Active | €799,000 | €3,275 | 18.7% | 72 | 73 |
| Albufeira e Olhos de Água · 00199e | Active | €825,000 | €3,173 | 21.3% | 74 | 72 |
| rua Júlio Diniz | Active | €1,080,000 | €5,870 | 45.7% | 67 | 74 |
| Median comp | €812,000 | €3,373 | 16.3% | 73 | 73 |
Short-term vacation rental The property’s high listing price creates a substantial gap from its fair value, indicating that it may not yield a desirable return on investment as a short-term vacation rental. With a gross yield of only 2.4%, the financials do not support a lucrative short-term rental strategy in this overpriced market. Buy-and-hold Investing in this property as a buy-and-hold strategy seems challenging given its 18.1% premium over fair value, which suggests limited upside potential in appreciation. Furthermore, annual yields of 2.4% fall short of what is typically needed to justify a long-term hold in a market that is currently overpriced. Long-term rental The excessive listing price and the property’s yield of 2.4% suggest that it is not well-positioned for success in the long-term rental sector. The gap above fair value limits the viability of generating strong cash flow in this overpriced environment.
Economic Vulnerability The economic stability score of 65/100 indicates potential vulnerabilities in the local economy that could impact property demand; combined with a higher tenant stability score of 75/100, this suggests that while tenants may remain, the broader economic factors may limit rental price growth or prompt vacancies.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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