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. Located Guia parish, Albufeira municipality, Faro district. Unique Feature: The villa boasts a generous rooftop terrace, offering panoramic views and an ideal setting for enjoying the region's mild climate. Community Amenities: Access to a shared pool enhances the lifestyle experience within the gated community.
The valuation. The asking price of €595,000 sits €29,025 (4.7%) below the fair value of €624,025, indicating a fair valuation for this property. Buy-to-flip angle. A potential resale strategy could target the booming tourist market, with renovations aimed at increasing property appeal for a quicker turnover. Buy-to-let angle. With an estimated rental income of €1,388/month, the property's gross yield of 2.8% makes it an attractive option for long-term rental in a desirable tourist area.
Fair value modelled at €624,025 from 2 comparable sales in the area. Asking €595,000 sits €29,025 (4.7%) below — the upside to fair value.
Asking €595,000 versus the Guia, Albufeira, Faro area baseline of €609,377 (€4,009/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €609,377, adjusted for condition and micro-location, gives a modelled fair value of €624,025 (€4,105/m²), a €29,025 (4.7%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Guia · 622949 | Subject | €595,000 | €3,914 | — | 75 | 71 |
| rua da Ponte Romana, 1 | Active | €479,000 | €3,303 | 15.6% | 72 | 70 |
| Alcantarilha e Pêra · 6a92c8 | Active | €530,000 | €4,907 | 25.4% | 80 | 71 |
| Median comp | €504,500 | €4,105 | 4.9% | 76 | 71 |
Short-term vacation rental The property, listed at €595,000, suggests a potential yield of 2.8%, aligning with the seasonal demand in a tourism-rich area like Algarve. However, with a fair value of €624,025, the investment represents a marginal gap of 4.7%, indicating it is fairly priced without significant room for appreciation. Long-term rental Given the consistent demand for long-term rentals in a tourist-centric location, the property offers a stable yield of 2.8%. Yet, with a valuation of €624,025 compared to the listing price, it is deemed fairly priced, suggesting limited upside potential in rental returns. Buy-and-hold This property could serve as a solid long-term hold due to its location in a well-established tourist area; however, with a valuation gap of only 4.7%, it is fairly priced rather than a compelling investment opportunity. The 2.8% yield may not provide enough incentive relative to the capital laid out for purchase due to its current pricing status. Not ideal for student housing Given that the property is located in a tourist hotspot, the educational infrastructure primarily serves the local populace, making it unsuitable for student housing. Furthermore, the local dynamics do not support a steady influx of student tenants, limiting rental stability. Not ideal for luxury market The current pricing and neighborhood ratings suggest that this property does not appeal to the luxury market, which typically demands higher-end finishes and premium locations. In this context, the property fails to meet the standards expected by luxury buyers, who often seek exclusivity and exceptional amenities. Not ideal for industrial investment The property is situated in a tourism-driven area, devoid of the characteristics necessary for industrial investments, such as access to transport corridors and industrial amenities. As such, the residential nature of the property does not align with the needs of industrial investors.
Economic and Tenant Stability Risk The property faces a moderate risk due to both the economic stability score of 65 and the tenant stability score of 65, indicating potential volatility in rental income and occupancy rates because these scores suggest instability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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