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 210 m², energy rating C. Located on rua do Horta, 4, Guia parish, Albufeira municipality, Faro district. Noteworthy Features: This villa includes a spacious 52.10 m² garage capable of fitting cars and a boat, enhancing convenience for recreational activities within the gated community.
The valuation. The asking price of €595,000 sits 6.4% above the fair value of €559,239, indicating a balanced valuation for the property. While it is slightly higher than estimated, it remains justifiable given the quality of finishes and location. Buy-to-flip angle. A buy-and-flip strategy may be viable given the high-quality finishes and demand in the Algarve luxury market. This approach could capitalize on potential renovations and a targeted marketing campaign to maximize resale value. Buy-to-let angle. The rental income strategy focuses on leveraging the gross yield of 4.7%, translating to approximately €2,330/month. This could appeal to tenants seeking luxury accommodations close to tourist hubs, ensuring consistent occupancy rates.
Fair value modelled at €559,239 from 3 comparable sales in the area. Asking €595,000 sits €35,761 (6.4%) above — overpriced versus fair value.
Asking €595,000 versus the rua do Horta, 4 area baseline of €559,695 (€2,665/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €559,695, adjusted for condition and micro-location, gives a modelled fair value of €559,239 (€2,663/m²), a €35,761 (6.4%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Horta, 4 | Subject | €595,000 | €2,833 | — | 78 | 74 |
| Guia · 956c07 | Active | €740,000 | €1,616 | 43.0% | 75 | 70 |
| Guia · f36488 | Active | €480,000 | €2,807 | 0.9% | 72 | 64 |
| Guia · 261f97 | Active | €490,000 | €2,663 | 6.0% | 65 | 64 |
| Median comp | €490,000 | €2,663 | 6.0% | 72 | 64 |
Short-term vacation rental The property can generate a gross yield of 4.7%, which is aligned with the demand for short-term rentals in Algarve's tourist areas. However, with a fair value of €559,239 compared to a listing price of €595,000, the investment does not provide a substantial discount. Buy-and-hold While this property is located in a neighborhood with a decent rating of 74/100 and a condition score of 80/100, the current market price of €595,000 suggests that prospective buyers may not see significant appreciation in the near future. The fair value gap of just 6.4% reinforces that this investment is unlikely to yield above-average returns over time. Luxury market Positioned within a sought-after area of Algarve, the house's features may attract buyers interested in luxury properties; however, the current list price exceeds the fair valuation. As such, this property may be considered within the luxury segment, but the absence of a substantial pricing advantage limits its investment appeal. Not ideal for student housing Given the property's characteristics and market positioning, it is not suited for student housing, which typically requires proximity to educational institutions and more economical pricing. The current price point and fair value assessment do not align with the needs of the student rental market. Not ideal for industrial investment Investing in an industrial property is clearly incompatible with this residential listing, particularly due to its location and neighborhood characteristics. The residential nature of the property and its evaluated market position further diminish its prospects for industrial investment relevance. Not ideal for high-density urban rental This 3-bed house in Guia is not structured for high-density urban rental strategies, catering instead to families or tourists. The pricing structure does not support the typically lower price points associated with high-density urban rental investments.
Moderate economic risk The economic stability score of 65/100 indicates potential volatility that may impact tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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