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, 6-bathroom villa of 482 m², built in 2020, energy rating A. Located on rua dos Arrifes, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a state-of-the-art sauna and gym in the basement, enhancing its luxury appeal alongside expansive outdoor living spaces that are ideal for entertainment.
The valuation. The asking price of €5,350,000 is significantly above the fair value of €3,186,840, indicating that the property is overpriced by €2,163,160 (67.9%). Buy-to-flip angle. The strategy for resale involves targeting short-term vacation rentals in a prime tourist area, potentially capitalizing on the villa’s high-quality finishings and location. Buy-to-let angle. A long-term rental strategy seems unprofitable given the gross yield of 0%, suggesting that immediate rental income may be unrealistic.
Fair value modelled at €3,186,840 from 6 comparable sales in the area. Asking €5,350,000 sits €2,163,160 (67.9%) above — overpriced versus fair value.
Asking €5,350,000 versus the rua dos Arrifes area baseline of €2,636,865 (€5,471/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 91/100 is above the parish average, lifting 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 €2,636,865, adjusted for condition and micro-location, gives a modelled fair value of €3,186,840 (€6,612/m²), a €2,163,160 (67.9%) gap versus the €5,350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua dos Arrifes | Subject | €5,350,000 | €11,100 | — | 92 | 70 |
| Albufeira e Olhos de Água · b329b7 | Active | €1,990,000 | €7,057 | 36.4% | 75 | 65 |
| rua Sir Cliff Richard | Active | €2,000,000 | €8,511 | 23.3% | 88 | 75 |
| Albufeira e Olhos de Água · 73548e | Active | €1,295,000 | €6,167 | 44.4% | 80 | 73 |
| Albufeira e Olhos de Água · 388fa9 | Active | €1,299,000 | €4,811 | 56.7% | 90 | 74 |
| Median comp | €1,644,500 | €6,612 | 40.4% | 84 | 74 |
Short-term vacation rental The property’s asking price of €5,350,000 is significantly above its fair value of €3,186,840, creating a 67.9% gap that discourages investment in the short-term vacation rental market. With a gross yield of 0%, the property fails to generate any income, further confirming it is overpriced for this strategy. Long-term rental At €5,350,000, the villa is priced excessively compared to its fair value of €3,186,840, which results in a problematic 67.9% price discrepancy that undermines long-term rental potential. The zero gross yield indicates that the investment would not yield positive cash flow, making it an unattractive option for long-term leasing. Buy-and-hold This villa, listed at €5,350,000, is overpriced with respect to its fair value of €3,186,840, representing a staggering 67.9% gap that poses significant risk for a buy-and-hold strategy. The property’s 0% gross yield further diminishes its appeal as a long-term asset, confirming that it is not a viable investment at this price point.
Economic Vulnerability With an economic stability score of 60/100, there is a risk that economic downturns could negatively impact 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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