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 258 m², energy rating C. Located Guia parish, Albufeira municipality, Faro district. Noteworthy Features: The home boasts a spacious open-plan living area flowing directly onto a private terrace, seamlessly integrating indoor and outdoor living for entertaining. Energy Category: C.
The valuation. The asking price of €595,000 is substantially below the fair value of €731,000, sitting €136,000 (18.6%) underpriced. This presents a notable opportunity for potential investors. Buy-to-flip angle. The resale strategy focuses on capitalizing on the property’s high-quality finishes and desirable location to appeal to buyers seeking modern homes, aiming for a profitable flip within 1-2 years. Buy-to-let angle. With an estimated gross yield of 4.6%, leveraging the location for short-term vacation rentals is a viable strategy, promising steady rental income from the tourist-heavy Algarve region.
Fair value modelled at €731,000 from 6 comparable sales in the area. Asking €595,000 sits €136,000 (18.6%) below — the upside to fair value.
Asking €595,000 versus the Guia, Albufeira, Faro area baseline of €694,708 (€2,693/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €694,708, adjusted for condition and micro-location, gives a modelled fair value of €731,000 (€2,833/m²), a €136,000 (18.6%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Guia · 86cb96 | Subject | €595,000 | €2,306 | — | 78 | 70 |
| rua do Horta, 4 | Active | €595,000 | €2,833 | 22.9% | 78 | 76 |
| rua São Sebastião | Active | €595,000 | €2,833 | 22.9% | 71 | 65 |
| Guia · 4a43a3 | Active | €595,000 | €2,833 | 22.9% | 79 | 73 |
| Guia · f5e9e7 | Active | €595,000 | €2,833 | 22.9% | 78 | 68 |
| Median comp | €595,000 | €2,833 | 22.8% | 78 | 71 |
Short-term vacation rental The property in Guia presents an attractive opportunity as a short-term vacation rental, considering its fair value at €731,000 compared to the listing price of €595,000, providing a potential gap of 18.6%. With a gross yield of 4.6% and located in a tourist-heavy region, it is well-positioned to capture seasonal tourist demand. Long-term rental As a long-term rental, this property offers a competitive yield of 4.6%, standing out in the Guia market. Its proximity to amenities and natural tourist appeal supports steady long-term demand from tenants seeking residence in the Algarve. Family rental The 3-bed house is suitable for family rental, leveraging the desirable neighborhood features and fair value assessment. With a good condition score of 77/100, it can attract families looking for comfortable living arrangements in a vibrant community. Not ideal for student housing Given the context of seasonal employment and lower tenant quality in the neighborhood, this property is not ideal for student housing. The transient nature of student populations may not align with the stable investment returns necessary for this strategy. Not ideal for luxury market The property is also not suited for the luxury market due to its placement outside of high-end desirability, as reflected in its economic and neighborhood ratings. The current listing does not support prestige pricing, keeping it anchored within more moderate market expectations.
Economic Vulnerability The economic stability score of 55/100 indicates a potential risk of market downturns that could negatively impact 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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