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.
1-bedroom, 2-bathroom villa of 84 m², energy rating C. Located on estrada das Sesmarias, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The villa boasts a charming mezzanine-style bedroom that enhances its character, and a spacious private terrace ideal for outdoor entertaining overlooking the resort's pool.
The valuation. The asking price for this 1-bed, 2-bath villa at €349,000 sits below the fair value of €389,053, creating a gap of €40,053 (10.3%). This presents an attractive opportunity for buyers looking to invest in underpriced assets.
Fair value modelled at €389,053 from 5 comparable sales in the area. Asking €349,000 sits €40,053 (10.3%) below — the upside to fair value.
Asking €349,000 versus the estrada das Sesmarias area baseline of €341,211 (€4,062/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €341,211, adjusted for condition and micro-location, gives a modelled fair value of €389,053 (€4,632/m²), a €40,053 (10.3%) gap versus the €349,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada das Sesmarias | Subject | €349,000 | €4,155 | — | 75 | 71 |
| Albufeira e Olhos de Água · 1e66a5 | Active | €385,000 | €5,000 | 20.3% | 75 | 70 |
| estrada das Sesmarias | Active | €345,000 | €2,924 | 29.6% | 70 | 71 |
| Albufeira e Olhos de Água · 96c6cd | Active | €880,000 | €4,632 | 11.5% | 73 | 70 |
| Guia · 735628 | Active | €475,000 | €5,108 | 22.9% | 80 | 73 |
| Median comp | €430,000 | €4,816 | 15.9% | 74 | 71 |
Short-term vacation rental This 1-bed villa in Albufeira is well-positioned for short-term vacation rentals, especially given its location in a prime tourist destination. With a gross yield of 4.3% and a 10.3% gap to fair value, it offers an attractive investment opportunity for generating seasonal income. Long-term rental The villa's fair value indicates a quality investment for long-term rental strategies, supported by a decent neighborhood rating of 71/100. Given the growing demand from both locals and expats, this property presents a stable rental potential, albeit with fluctuations due to seasonal tourism. Buy-and-hold As a buy-and-hold investment, this villa benefits from Albufeira's robust tourism market, which promises appreciation over time while generating income. The current gap to fair value and favorable yield position it as a sound asset for long-term wealth creation. Not ideal for: Student housing The transient nature of Albufeira's population and its positioning as a tourist hub make this villa unsuitable for student housing. The property lacks the stable demand found in traditionally student-heavy areas, limiting its appeal for long-term tenants focused on academic pursuits.
Economic and Tenant Instability Risk The investment faces potential vacancy risks due to a relatively low economic stability score of 65/100 and an even lower tenant stability score of 60/100, indicating possible difficulties in maintaining rent levels and occupancy 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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