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.
4-bedroom, 4-bathroom house of 472 m² on the 3rd floor, built in 2000, energy rating A. Located on avenida dos Descobrimentos S / N T, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features unobstructed views and a spacious basement with parking for three or more cars, enhancing both convenience and lifestyle in a privileged location.
The valuation. The asking price of €2,200,000 is significantly below the fair value of €3,150,984, indicating it is undervalued by €950,984 (30.2%). This presents a compelling opportunity for potential buyers looking for value in this desirable location.
Fair value modelled at €3,150,984 from 6 comparable sales in the area. Asking €2,200,000 sits €950,984 (30.2%) below — the upside to fair value.
Asking €2,200,000 versus the avenida dos Descobrimentos S / N T area baseline of €2,749,815 (€5,826/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 €2,749,815, adjusted for condition and micro-location, gives a modelled fair value of €3,150,984 (€6,676/m²), a €950,984 (30.2%) gap versus the €2,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida dos Descobrimentos S / N T | Subject | €2,200,000 | €4,661 | — | 80 | 73 |
| Albufeira e Olhos de Água · 1e6471 | Active | €1,395,000 | €7,500 | 60.9% | 80 | 73 |
| beco Joaquim Brás Júnior Soldado, 10 | Active | €1,100,000 | €5,820 | 24.9% | 85 | 63 |
| Albufeira e Olhos de Água · f14c67 | Active | €1,495,000 | €4,321 | 7.3% | 80 | 71 |
| rua do Vilageado | Active | €890,000 | €7,417 | 59.1% | 78 | 63 |
| Median comp | €1,247,500 | €6,619 | 42.0% | 80 | 67 |
Short-term vacation rental The property in Albufeira e Olhos de Água presents an opportunity for a short-term vacation rental strategy, given its 1.6% gross yield and the strong tourist-driven economy of the Algarve region. Although the yield is modest, the 30.2% gap from fair value suggests potential for appreciation as demand for vacation rentals continues to rise. Buy-and-hold Investing in this property as a buy-and-hold asset could yield significant long-term returns, considering its fair value of €3,150,984 compared to the listing price of €2,200,000. The solid condition rating of 80/100 further enhances its attractiveness for long-term appreciation in a growing market. Long-term rental The property may also effectively serve as a long-term rental investment, leveraging the area's high safety rating and decent tenant quality, with a neighbourhood score of 73/100. While the gross yield of 1.6% is lower than ideal, the substantial gap from fair value points to potential for increased rental income over time.
Economic Vulnerability With an economic stability score of 65/100, there is a risk that economic fluctuations could negatively impact property value and rental income, potentially leading to decreased tenant demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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