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.
6-bedroom, 5-bathroom house of 315 m², built in 1996, energy rating D. Located on rua Vale Navio, 8, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This villa offers an impressive sea view and is equipped with a heated pool, enhancing year-round outdoor enjoyment and leisure flexibility for the residents.
The valuation. The asking price of €1,600,000 is significantly below the fair value of €1,966,154, making it underpriced by €366,154 (18.6%). This presents an attractive opportunity for potential investors.
Fair value modelled at €1,966,154 from 6 comparable sales in the area. Asking €1,600,000 sits €366,154 (18.6%) below — the upside to fair value.
Asking €1,600,000 versus the rua Vale Navio, 8 area baseline of €1,711,324 (€5,433/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €1,711,324, adjusted for condition and micro-location, gives a modelled fair value of €1,966,154 (€6,242/m²), a €366,154 (18.6%) gap versus the €1,600,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Vale Navio, 8 | Subject | €1,600,000 | €5,079 | — | 79 | 76 |
| rua de Brejos | Active | €2,350,000 | €6,714 | 32.2% | 82 | 71 |
| Ferreiras · 652ff2 | Active | €695,000 | €3,639 | 28.4% | 65 | 69 |
| caminho do Monte, 9 | Active | €2,000,000 | €10,101 | 98.9% | 87 | 72 |
| beco da Pedra dos Bicos | Active | €10,500,000 | €34,091 | 571.2% | — | 64 |
| Median comp | €2,175,000 | €8,408 | 65.5% | 82 | 70 |
Short-term vacation rental With a fair value of €1,966,154, the property is currently priced 18.6% below this benchmark, indicating it presents a lucrative opportunity for short-term vacation rentals. Its prime location in the Algarve, a favored tourist destination, supports strong demand for short-term accommodations, leveraging a gross yield of 3.6%. Long-term rental The property’s favorable fair value suggests it is an advantageous investment for long-term rental, positioning it well to attract stable tenants in a desirable neighborhood with an overall rating of 76/100. The combination of location and fair pricing provides a solid foundation for sustainable rental income over time. Buy-and-hold Investing with a buy-and-hold strategy is compelling, as the property is valued 18.6% below its fair market price, suggesting significant potential appreciation. The strong neighborhood amenities and the property’s good condition (82/100) enhance its appeal as a long-term asset in a thriving market. Not ideal for student housing Due to the property's size and location, it is not suitable for student housing, where smaller accommodations are typically more in demand. Additionally, the overall neighborhood rating does not align with the preferences of the student demographic, limiting potential returns in this segment. Not ideal for luxury market This property is overvalued for the luxury market segment, as the pricing does not match the current high-end demand expectations in the area. While it has desirable features, it lacks unique aspects that typically attract luxury buyers, making it less favorable in this sector. Not ideal for industrial development With its residential zoning and location in a tourist-centric area, the property is not suitable for industrial development. The surrounding amenities cater more to the residential and tourist markets, rather than industrial needs, which limits its applicability for such ventures.
Economic Vulnerability The economic stability score of 70/100 indicates a moderate risk that economic fluctuations could affect tenant occupancy rates negatively, potentially leading to decreased rental income.
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