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 villa of 132 m², built in 2006, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This villa boasts a large private terrace ideal for outdoor gatherings, and is situated in the exclusive Pateo da Torre Condominium with well-maintained communal green areas and pool.
The valuation. The asking price of €550,000 is significantly above the fair value of €470,666, representing a discrepancy of €79,334 (16.9%). This property is therefore considered overpriced and may deter potential investors seeking value. Buy-to-flip angle. Given the current market conditions, a buy-to-flip strategy may not generate the desired profit margins due to the high acquisition cost, thus limiting potential resale opportunities. Short-term renovations could increase appeal, but profitability remains questionable. Buy-to-let angle. Targeting a gross yield of 3.9%, this villa could generate approximately €1,788 per month in rental income, appealing to the vacation rental market in a tourist-heavy location. The demand for family rentals in Algarve supports a stable tenant base.
Fair value modelled at €470,666 from 6 comparable sales in the area. Asking €550,000 sits €79,334 (16.9%) above — overpriced versus fair value.
Asking €550,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €392,680 (€2,975/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €392,680, adjusted for condition and micro-location, gives a modelled fair value of €470,666 (€3,566/m²), a €79,334 (16.9%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 62263d | Subject | €550,000 | €4,167 | — | 72 | 72 |
| Albufeira e Olhos de Água · 090272 | Active | €750,000 | €4,167 | 0% | 70 | 71 |
| avenida das Ilhas, 17 | Active | €799,000 | €3,275 | 21.4% | 72 | 73 |
| Albufeira e Olhos de Água · 6fbb48 | Active | €750,000 | €4,167 | 0% | 60 | 71 |
| Albufeira e Olhos de Água · 6fb9c1 | Active | €615,000 | €3,661 | 12.1% | 82 | 75 |
| Median comp | €750,000 | €3,914 | 6.1% | 71 | 72 |
Short-term vacation rental The property is priced at €550,000, which is 16.9% above its fair value of €470,666, limiting the potential for profitable short-term vacation rental returns. With a gross yield of only 3.9%, this investment lacks the necessary financial incentive to attract tourists consistently. Buy-and-hold Given its current valuation of €550,000 versus a fair value of €470,666, the villa presents a gap of 16.9%, suggesting that holding this property may not yield desirable capital appreciation over time. The 76/100 condition rating and moderate gross yield of 3.9% further indicate that the financial outlook is less favorable for long-term investors. Family rental While the villa is located in an area appealing to families, its listing price of €550,000 is 16.9% higher than the fair value of €470,666, making it an expensive option for long-term tenants. The combination of a 3.9% gross yield and a neighborhood rating of 72/100 suggests that this property may struggle to attract stable family renters.
Economic Volatility Risk The economic stability score of 65/100 suggests a moderate level of economic volatility that could affect property values 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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