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.
5-bedroom, 9-bathroom villa of 825 m², built in 1988, energy rating A. Located on rua dos Aveiros, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a uniquely designed infinity pool that seamlessly merges with the horizon, enhancing the stunning ocean views and providing a luxurious outdoor experience.
The valuation. The asking price of €18,500,000 significantly exceeds the fair value of €4,635,016, making it overpriced by €13,864,984 (299.1%). This gap suggests little potential for a financially sound investment.
Fair value modelled at €4,635,016 from 6 comparable sales in the area. Asking €18,500,000 sits €13,864,984 (299.1%) above — overpriced versus fair value.
Asking €18,500,000 versus the rua dos Aveiros area baseline of €3,743,593 (€4,538/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 90/100 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 €3,743,593, adjusted for condition and micro-location, gives a modelled fair value of €4,635,016 (€5,618/m²), a €13,864,984 (299.1%) gap versus the €18,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua dos Aveiros | Subject | €18,500,000 | €22,424 | — | 92 | 73 |
| Albufeira e Olhos de Água · b3286c | Active | €4,850,000 | €6,467 | 71.2% | 88 | 74 |
| rua dos Arrifes | Active | €5,350,000 | €11,100 | 50.5% | 92 | 70 |
| Albufeira e Olhos de Água · b329b7 | Active | €1,990,000 | €7,057 | 68.5% | 75 | 65 |
| travessa Antero de Quental | Active | €1,790,000 | €4,334 | 80.7% | 75 | 74 |
| Median comp | €3,420,000 | €6,762 | 69.8% | 82 | 72 |
Short-term vacation rental The property is significantly overpriced at €18,500,000 compared to its fair value of €4,635,016, suggesting a substantial market misalignment. With a gross yield of 0%, this investment lacks the cash flow potential typically sought in short-term vacation rental strategies. Long-term rental Given the property's current valuation at 299.1% above its fair value, it does not represent a sound investment for long-term rental opportunities. The lack of positive yield further reinforces that this villa is not positioned to deliver sustainable rental income. Buy-and-hold As an investment strategy, the villa is priced excessively at €18,500,000 against a fair value of only €4,635,016, effectively rendering it a poor buy-and-hold opportunity. The 0% gross yield indicates that holding this property is unlikely to generate any favorable returns. Not ideal for The property is not suitable for student housing due to its inflated pricing and lack of essential cash flow. Similarly, it falls short in the luxury market due to a significant disconnect between market expectations and its excessive valuation.
Potential economic decline The economic stability score of 65 indicates a moderate risk of economic downturns that could impact tenant stability 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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