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, 5-bathroom house of 510 m², energy rating A. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a spacious rooftop terrace ideal for sunset views and entertaining, boosting its appeal in the already desirable Galé area.
The valuation. The asking price of €1,950,000 sits 14.9% below the fair value of €2,290,366, indicating the property is underpriced and presents a rare opportunity for savvy investors. Buy-to-flip angle. The resale strategy focuses on enhancing appeal through renovations, aiming to leverage the €340,366 margin for profit upon resale in a strong market. Buy-to-let angle. Estimated monthly rental income of €1,788 generates a modest gross yield of 1.1%, appealing as a buy-and-hold investment in the Albufeira vacation rental market.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 38b5d0 | Subject | €1,950,000 | €3,824 | — | — | 75 |
| rua da Vela Redonda | Active | €1,300,000 | €4,207 | 10.0% | 75 | 72 |
| avenida dos Descobrimentos S / N T | Active | €2,200,000 | €4,661 | 21.9% | 80 | 73 |
| Albufeira e Olhos de Água · f14c67 | Active | €1,495,000 | €4,321 | 13.0% | 80 | 71 |
| Albufeira e Olhos de Água · 6272cd | Active | €599,000 | €3,941 | 3.1% | 75 | 65 |
| Median comp | €1,397,500 | €4,264 | 11.5% | 78 | 72 |
Short-term vacation rental The property presents an attractive potential for short-term vacation rentals, especially considering the significant gap from its fair value, indicating positive market dynamics. With the Algarve's strong appeal to tourists and expats, this strategy could yield increased returns despite the current low gross yield of 1.1%. Buy-and-hold Investing in this property aligns well with a buy-and-hold strategy, given its underpriced status relative to its fair value, suggesting a strong appreciation potential over time. The economic resilience of the neighborhood, scoring 75/100, supports long-term value stability and growth. Family rental A family rental strategy may prove beneficial, as the property is well-suited for long-term tenants who value the area's amenities and quality. Despite the low gross yield of 1.1%, the price below fair value indicates a favorable entry point in a strong neighborhood market. Student housing The property is not ideal for student housing as the target demographic typically seeks affordable options, which this property does not offer. The current valuation and neighborhood characteristics do not align with the needs of student renters. Luxury market This property should not be positioned within the luxury market due to its low condition rating of 0/100, which fails to meet the expectations of high-end buyers. Consequently, the substantial pricing relative to fair value diminishes its appeal in the luxury sector.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could impact property value and tenant demand negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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