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, 3-bathroom house of 152 m², energy rating C. Located on rua São Sebastião Condominio Encosta da Guia, Guia parish, Albufeira municipality, Faro district. The property features a modern kitchen with high-quality built-in Haier appliances, complemented by a spacious terrace with a barbecue area, ideal for outdoor entertaining.
The valuation. The asking price of €595,000 is below the fair value of €705,323, making this property subpriced by €110,323 or 15.6%. This presents an attractive opportunity for investors looking for value. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the €110,323 spread by renovating and reselling the property in a thriving tourist market, potentially gaining significant returns. Buy-to-let angle. The gross yield of 2.8% from a projected €1,388/month offers a stable income stream, appealing for both short-term vacation rentals and long-term family rental markets given the region's tourism.
Fair value modelled at €705,323 from 6 comparable sales in the area. Asking €595,000 sits €110,323 (15.6%) below — the upside to fair value.
Asking €595,000 versus the rua São Sebastião Condominio Encosta da Guia area baseline of €657,461 (€4,325/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €657,461, adjusted for condition and micro-location, gives a modelled fair value of €705,323 (€4,640/m²), a €110,323 (15.6%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua São Sebastião Condominio Encosta da Guia | Subject | €595,000 | €3,914 | — | 75 | 67 |
| rua da Ponte Romana, 1 | Active | €479,000 | €3,303 | 15.6% | 72 | 70 |
| Guia · 911674 | Active | €1,200,000 | €5,063 | 29.3% | 80 | 73 |
| Alcantarilha e Pêra · 6a92c8 | Active | €530,000 | €4,907 | 25.4% | 80 | 71 |
| rua do Catavento | Active | €1,670,000 | €4,758 | 21.5% | 75 | 73 |
| Median comp | €865,000 | €4,833 | 23.5% | 78 | 72 |
Short-term vacation rental This property offers an appealing investment opportunity as a short-term vacation rental, with a fair value of €705,323 indicating a 15.6% gap compared to the listing price of €595,000. Given the Algarve's popularity in the tourism sector, this can generate a consistent stream of income despite seasonal fluctuations. Buy-and-hold With a fair value of €705,323 compared to the listing of €595,000, this property is positioned favorably for a buy-and-hold strategy, reflecting a 15.6% gap. The positive market dynamics in the Algarve area suggest potential appreciation over time, making it a suitable long-term asset. Family rental As a family rental, this property presents a compelling option, with a fair value that exceeds the listing price by 15.6%. Its solid condition score of 77/100 and the stabilizing demand in Algarve enhance its attractiveness in the family housing market despite current economic challenges.
Economic Vulnerability With an economic stability score of 60/100, there is a risk of declining local economic conditions that could negatively impact rental income and property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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