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 villa of 1000 m², built in 2003, energy rating D. Located on via External Staircase Investment Potential, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. The villa features a saltwater pool with heating and a shaded pergola for alfresco dining, enhancing outdoor entertainment in the beautifully landscaped garden.
The valuation. The asking price of €890,000 is significantly below the fair value of €2,138,107, making it underpriced by €1,248,107 (58.4%). This presents a strong opportunity for potential investors.
Fair value modelled at €2,138,107 from 6 comparable sales in the area. Asking €890,000 sits €1,248,107 (58.4%) below — the upside to fair value.
Asking €890,000 versus the via External Staircase Investment Potential area baseline of €1,261,786 (€1,262/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €1,261,786, adjusted for condition and micro-location, gives a modelled fair value of €2,138,107 (€2,138/m²), a €1,248,107 (58.4%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| via External Staircase Investment Potential | Subject | €890,000 | €890 | — | 76 | 76 |
| Albufeira e Olhos de Água · 0dcf1a | Active | €750,000 | €833 | 6.4% | 75 | 71 |
| Albufeira e Olhos de Água · ba5b1b | Active | €525,000 | €1,981 | 122.6% | 75 | 73 |
| Albufeira e Olhos de Água · 96c6ca | Active | €849,000 | €3,949 | 343.7% | 72 | 74 |
| beco das Papoilas S / N | Active | €559,000 | €3,005 | 237.7% | 80 | 65 |
| Median comp | €654,500 | €2,493 | 180.1% | 75 | 72 |
Short-term vacation rental The villa's location in the tourist-driven economy of Algarve makes it an attractive option for short-term vacation rentals, providing strong potential for rental income. Despite the low yield, the substantial gap of 58.4% from fair value indicates significant potential for appreciation in a thriving rental market. Long-term rental While the gross yield is currently at 0%, the villa's desirable features and favorable neighborhood ratings suggest stability and potential for future demand in long-term rentals. The impressive fair value indicates that investing in this property could lead to substantial equity growth over time. Buy-and-hold Given the significant difference between the listing price and fair value, this villa represents a compelling buy-and-hold opportunity for investors seeking long-term value appreciation. The property’s compatibility with a low-crime area and strong neighborhood ratings further bolster its attractiveness for sustained investment. Not ideal for student housing The property is not well-suited for student housing due to the nature of the villa and neighborhood characteristics that align more with family or tourist accommodations. This misalignment limits potential returns from this rental strategy. Not ideal for luxury market Positioned as a mid-range accommodation, the villa does not cater to the luxury market, which may hinder its appeal to high-end clients seeking more exclusive properties. This limitation could affect its performance in terms of premium pricing and rental returns.
Market Volatility Risk With an economic stability score of 70/100, there is a risk of fluctuations in local market conditions that could affect property value and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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