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.
4-bedroom, 3-bathroom villa of 120 m², built in 1978, energy rating A+. Located on rua do Vilageado, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This property features a separate entrance for one guest suite, enhancing privacy for visitors while maintaining an open and inviting environment for residents.
The valuation. The asking price of €890,000 is significantly above the fair value of €385,450, presenting an excess of €504,550 (56.7%). This property is clearly overpriced.
Fair value modelled at €385,450 from the area baseline, adjusted for condition and location. Asking €890,000 sits €504,550 (56.7%) above — overpriced versus fair value.
Asking €890,000 versus the rua do Vilageado area baseline of €417,120 (€3,476/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 78 · Materials 75 · Room dimensions 77). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 50 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua do Vilageado
Area baseline €417,120 + condition +€2,437 + location +€18,932 = modelled fair value of €385,450 (€3,212/m²), a €504,550 (56.7%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Vilageado | Subject | €890,000 | €7,417 | — | 78 | 63 |
| Albufeira e Olhos de Água · 1e6471 | Active | €1,395,000 | €7,500 | 1.1% | 80 | 73 |
| rua Sir Cliff Richard | Active | €2,000,000 | €8,511 | 14.8% | 88 | 75 |
| rua 5 de Outubro, 39 | Active | €730,000 | €5,935 | 20.0% | 75 | 68 |
| Albufeira e Olhos de Água · 483c81 | Active | €975,000 | €5,132 | 30.8% | 82 | 69 |
| Median comp | €1,185,000 | €6,718 | 9.4% | 81 | 71 |
Short-term vacation rental The property is not suitable for short-term vacation rentals, as it is priced at €890,000, which is 56.7% above its fair value of €385,450. The yield of 2.2% gross further indicates limited financial attractiveness in a market characterized by fluctuating tourist demand. Buy-and-hold Investors should avoid a buy-and-hold strategy for this property due to its significant overvaluation, with a listing price of €890,000 compared to a fair value of €385,450. The subpar condition rating of 76/100 suggests potential increased maintenance costs, undermining long-term investment returns. Long-term rental Given the current pricing of €890,000, which is 56.7% higher than its fair value of €385,450, this property is unattractive for long-term rental strategies. The 2.2% gross yield indicates that potential rental income does not justify the substantial investment required for this overpriced villa.
Tenant turnover risk The combination of a tenant stability score of 60/100 and an economic stability score of 50/100 indicates a potential for higher tenant turnover, which could disrupt cash flow and increase vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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