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, 3-bathroom villa of 120 m², built in 1978, energy rating A+. Located on rua do Vilageado, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This villa includes a separate entrance for one of the en-suites, ideal for guests or rental opportunities, and boasts a solar panel system for energy efficiency.
The valuation. The asking price of €890,000 sits significantly above the fair value of €565,090, indicating that the property is overpriced by €324,910, or 57.5%. This substantial premium is not justified given current market conditions.
Fair value modelled at €565,090 from 4 comparable sales in the area. Asking €890,000 sits €324,910 (57.5%) above — overpriced versus fair value.
Asking €890,000 versus the rua do Vilageado area baseline of €470,382 (€3,920/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €470,382, adjusted for condition and micro-location, gives a modelled fair value of €565,090 (€4,709/m²), a €324,910 (57.5%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Vilageado | Subject | €890,000 | €7,417 | — | 76 | 73 |
| Albufeira e Olhos de Água · efdc43 | Active | €890,000 | €5,563 | 25.0% | 78 | 73 |
| avenida dos Descobrimentos S / N T | Active | €2,200,000 | €4,661 | 37.2% | 80 | 73 |
| Albufeira e Olhos de Água · efdd54 | Active | €999,000 | €4,757 | 35.9% | 82 | 73 |
| Albufeira e Olhos de Água · 3d9904 | Active | €965,000 | €4,347 | 41.4% | 80 | 70 |
| Median comp | €982,000 | €4,709 | 36.5% | 80 | 73 |
Long-term rental This property is overpriced by 57.5% relative to its fair value of €565,090, resulting in a gross yield of only 2.2%, which is not compelling for long-term rental investment. Additionally, while the condition score of 79/100 suggests decent upkeep, the valuation reveals significant risk in profitability potential. Short-term vacation rental Given its location in the popular tourist region of western Algarve, this property could be attractive for short-term vacation rentals; however, its current price of €890,000 is much higher than the fair value. This 57.5% gap negatively impacts expected returns, limiting its feasibility as a vacation rental investment. Buy-and-hold With an asking price that far exceeds the fair value, this villa is overpriced and presents challenges for a successful buy-and-hold strategy. The low yield of 2.2% further exacerbates the risk, indicating it may not meet long-term investment goals. Not ideal for Considering its high price, this property is not suitable for student housing or luxury market investments, which typically require better yield metrics. Furthermore, concentrating on industrial ventures proves irrelevant due to the villa's residential focus and location.
Economic Vulnerability The economic stability score of 65/100 indicates a potential risk of fluctuating market conditions impacting rental income and property value.
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