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, 3-bathroom house of 324 m², energy rating D. Located on rua dos Bombeiros Voluntários, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property holds approved rural tourism potential for conversion into a rural hotel, confirmed by the Albufeira City Hall, ensuring significant investment opportunities in a charming area.
The valuation. The asking price of €1,490,000 is significantly below fair value at €1,901,739, indicating an undervalued property by €411,739 or 21.7%. This presents a compelling buying opportunity in the current market.
Fair value modelled at €1,901,739 from 6 comparable sales in the area. Asking €1,490,000 sits €411,739 (21.7%) below — the upside to fair value.
Asking €1,490,000 versus the rua dos Bombeiros Voluntários area baseline of €1,749,534 (€5,400/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 is below the parish average, reducing 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 €1,749,534, adjusted for condition and micro-location, gives a modelled fair value of €1,901,739 (€5,870/m²), a €411,739 (21.7%) gap versus the €1,490,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua dos Bombeiros Voluntários | Subject | €1,490,000 | €4,599 | — | 70 | 74 |
| Albufeira e Olhos de Água · 99f4f0 | Active | €1,080,000 | €9,153 | 99.0% | 60 | 75 |
| rua Júlio Diniz S / N | Active | €1,080,000 | €5,870 | 27.6% | 70 | 64 |
| rua Júlio Diniz | Active | €1,080,000 | €5,870 | 27.6% | 67 | 74 |
| via do Infante, 125 | Active | €575,000 | €6,053 | 31.6% | — | 80 |
| Median comp | €1,080,000 | €5,962 | 29.6% | 67 | 75 |
Short-term vacation rental The property is suitable for short-term vacation rentals given its proximity to the coastline and tourist amenities, appealing to tourists seeking accommodation in Albufeira. With a fair value gap of 21.7%, investing now could yield a strong return as demand in this seasonal market remains robust. Long-term rental While the gross yield of 2.6% is relatively modest, the property's large size and favorable neighborhood ratings indicate a steady demand for long-term rentals in Albufeira. This strategy could provide stable cash flow, albeit with limited upside, as the property is presently valued below its fair market price. Buy-and-hold Investing in a buy-and-hold strategy is compelling due to the property's subvalorizada status and its potential appreciation in a tourist-driven area. As the economy of the Algarve strengthens with increasing tourism, long-term gains can be expected from holding this asset, despite its current gross yield being less than attractive. Not ideal for student housing The property does not serve well as student housing due to the lack of proximity to educational institutions, which could limit occupancy rates. Thus, targeting a student demographic may not be a strategic approach in this particular location. Not ideal for industrial property Given the property’s residential characteristics and location within a tourist region, it is ill-suited for industrial development. The market dynamics of Albufeira favor residential and vacation rental investments rather than industrial purposes.
Economic Dependence Risk With an economic stability score of 65/100, there is a potential risk of economic downturns impacting tenant income and occupancy rates.
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