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, 4-bathroom house of 267 m², built in 1988, energy rating B. Located on rua do Cerro S / N, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Remarkable Feature: Positioned on the slope of Cerro D'Águia, this villa offers stunning panoramic views of the Atlantic and Albufeira Marina, enhancing its desirability and investment potential. Condition Notes: While structurally sound, it requires minor maintenance and thoughtful renovations to match its breathtaking location.
The valuation. The asking price of €2,200,000 is significantly above the fair value of €1,412,063, with a difference of €787,937 (55.8%). This indicates the property is overpriced beyond its justified value.
Fair value modelled at €1,412,063 from 6 comparable sales in the area. Asking €2,200,000 sits €787,937 (55.8%) above — overpriced versus fair value.
Asking €2,200,000 versus the rua do Cerro S / N area baseline of €1,260,257 (€4,720/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 is below the parish average, reducing 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 €1,260,257, adjusted for condition and micro-location, gives a modelled fair value of €1,412,063 (€5,289/m²), a €787,937 (55.8%) gap versus the €2,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Cerro S / N | Subject | €2,200,000 | €8,240 | — | 65 | 70 |
| Albufeira e Olhos de Água · dc1453 | Active | €1,295,000 | €6,167 | 25.2% | 80 | 68 |
| Albufeira e Olhos de Água · 73548e | Active | €1,295,000 | €6,167 | 25.2% | 80 | 73 |
| avenida dos Descobrimentos S / N T | Active | €2,200,000 | €4,661 | 43.4% | 80 | 73 |
| beco Joaquim Brás Júnior Soldado, 10 | Active | €1,100,000 | €5,820 | 29.4% | 85 | 63 |
| Median comp | €1,295,000 | €5,994 | 27.3% | 80 | 71 |
Short-term vacation rental The 6-bed house in Albufeira with a gross yield of just 2.1% indicates that the property is overpriced, especially when compared to the fair value of €1,412,063. Additionally, with a condition rating of 70/100, potential rental returns may not meet the expectations of investors looking to capitalize on the strong tourist-driven market in the Algarve. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unfavorable, given its significant gap of 55.8% above fair value, which leads to potential capital appreciation concerns. Furthermore, its lower condition and neighbourhood ratings hinder its attractiveness as a long-term investment. Family rental Positioning this property as a family rental comes with challenges, as its price of €2,200,000 is substantially above the fair value, limiting profitability. The neighbourhood's 70/100 rating suggests average tenant quality, making it a less desirable investment for families despite the appealing location. Not ideal for: Student housing, Luxury market Given its high price tag and the economic landscape, this property is not suitable for the student housing market, where affordability is key. Similarly, its condition and overall pricing do not align with the expectations of the luxury market, resulting in a misalignment of value proposition.
Tenant turnover risk The tenant stability score of 60/100 suggests a potential for higher vacancy rates and associated costs due to less reliable tenant retention.
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