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 169 m², built in 2018. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy features: The property includes a separate remodeled pool support house with a kitchenette and living area, ideal for hosting guests, complementing the main house's luxurious amenities.
The valuation. The asking price of €1,150,000 is significantly below the fair value of €1,450,387, representing a discount of €300,387 (20.7%). This presents a unique opportunity for investors looking to capitalize on this undervalued property.
Fair value modelled at €1,450,387 from 6 comparable sales in the area. Asking €1,150,000 sits €300,387 (20.7%) below — the upside to fair value.
Asking €1,150,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €1,300,475 (€7,695/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €1,300,475, adjusted for condition and micro-location, gives a modelled fair value of €1,450,387 (€8,582/m²), a €300,387 (20.7%) gap versus the €1,150,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 653048 | Subject | €1,150,000 | €6,805 | — | 81 | 70 |
| Albufeira e Olhos de Água · da46a0 | Active | €1,382,000 | €8,275 | 21.6% | 80 | 71 |
| via do Infante | Active | €547,000 | €3,647 | 46.4% | 75 | 79 |
| Albufeira e Olhos de Água · 483c80 | Active | €1,765,000 | €13,271 | 95.0% | 85 | 71 |
| Albufeira e Olhos de Água · 1e6205 | Active | €1,280,000 | €8,889 | 30.6% | 78 | 75 |
| Median comp | €1,331,000 | €8,582 | 26.1% | 79 | 73 |
Long-term rental The property presents a gross yield of 1.8%, which is relatively low for consistent cash flow expectations. Additionally, while it is in good condition with a score of 83/100, the neighborhood rating of 70/100 may limit tenant demand in the long run. Short-term vacation rental As a 3-bed house in Albufeira, the property potentially benefits from the region's strong tourism-driven demand. However, the gap to fair value indicates a higher price level that could restrict profitability in the short-term rental market. Buy-and-hold Given the fair value of €1,450,387 compared to the listing price of €1,150,000, this asset could appreciate over time, leveraging the Algarve's popularity. Nonetheless, the modest gross yield of 1.8% alongside the current rental dynamics suggests that holding may be strategic rather than immediately profitable.
Market Vulnerability The property faces a moderate investment risk due to a combined economic stability score of 55 and tenant stability score of 60, indicating potential volatility in income generation and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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