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, 2-bathroom house of 130 m², built in 1994, energy rating F. Located on estrada da Balaia, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Feature: This property boasts direct access to a well-maintained garden and a community pool within a serene condominium setting, enhancing outdoor leisure opportunities for residents.
The valuation. The asking price of €420,000 exceeds the fair value of €352,164 by €67,836 (19.3%), indicating that the property is overpriced and not a sound investment choice at this price point.
Fair value modelled at €352,164 from 6 comparable sales in the area. Asking €420,000 sits €67,836 (19.3%) above — overpriced versus fair value.
Asking €420,000 versus the estrada da Balaia area baseline of €258,448 (€1,988/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €258,448, adjusted for condition and micro-location, gives a modelled fair value of €352,164 (€2,709/m²), a €67,836 (19.3%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada da Balaia | Subject | €420,000 | €3,231 | — | 74 | 73 |
| Albufeira e Olhos de Água · ba3e5d | Active | €420,000 | €2,295 | 29.0% | 72 | 76 |
| Albufeira e Olhos de Água · 3df3ad | Active | €465,000 | €3,875 | 19.9% | 75 | 65 |
| rua Doutor Roberto Roquette | Active | €465,000 | €4,266 | 32.0% | 70 | 73 |
| Albufeira e Olhos de Água · 25f562 | Active | €524,000 | €2,879 | 10.9% | 75 | 64 |
| Median comp | €465,000 | €3,377 | 4.5% | 74 | 69 |
Short-term vacation rental This property’s valuation at €420,000 exceeds its fair value of €352,164, indicating it is overpriced and reducing its attractiveness for short-term vacation rentals. While the gross yield of 5.3% appears enticing, the misalignment with fair value is a significant risk for potential investors. Long-term rental Although the property could generate a gross yield of 5.3% through long-term rental, its listing price of €420,000 is substantially higher than the fair value of €352,164, categorizing it as overpriced. This price gap suggests diminished potential returns, which may deter long-term rental investors seeking sound investment opportunities. Buy-and-hold Investing in this property as a buy-and-hold strategy is compromised given its €420,000 asking price, which is above the fair value of €352,164 and thus overpriced. The imbalance between the property’s market price and its fair value raises concerns regarding future equity growth and overall investment desirability. Not ideal for: Student housing, Luxury market, Value-add renovation The property is not suitable for student housing due to its high price point, which denies affordability for typical students in the locale. Additionally, entering the luxury market or pursuing value-add renovations is inappropriate as the property is already overpriced, risking excessive investment without sufficient return potential.
Economic Volatility The property has a modest economic stability score of 65/100, indicating potential vulnerabilities to market fluctuations that could impact tenant occupancy and rent levels.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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