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.
5-bedroom, 5-bathroom villa of 397 m², built in 2013, energy rating A. Located Guia parish, Albufeira municipality, Faro district. Noteworthy Features: The villa includes a unique basement entertainment room with a window overlooking the pool and a comprehensive smart home system for enhanced convenience and security.
The valuation. The asking price of €1,995,000 is significantly above the fair value of €1,685,460, creating an overvaluation of €309,540 (18.4%). This suggests the property is overpriced compared to its market worth.
Fair value modelled at €1,685,460 from 6 comparable sales in the area. Asking €1,995,000 sits €309,540 (18.4%) above — overpriced versus fair value.
Asking €1,995,000 versus the Guia, Albufeira, Faro area baseline of €1,874,660 (€4,722/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €1,874,660, adjusted for condition and micro-location, gives a modelled fair value of €1,685,460 (€4,245/m²), a €309,540 (18.4%) gap versus the €1,995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Guia · 83115f | Subject | €1,995,000 | €5,025 | — | 82 | 73 |
| Ferreiras · 23f2a0 | Active | €630,000 | €3,231 | 35.7% | 82 | 70 |
| Guia · 4bbf05 | Active | €1,250,000 | €3,968 | 21.0% | 85 | 69 |
| Guia · 0239d9 | Active | €995,000 | €4,523 | 10.0% | 85 | 76 |
| Ferreiras · 15e2c4 | Active | €550,000 | €3,056 | 39.2% | 75 | 62 |
| Median comp | €812,500 | €3,600 | 28.4% | 84 | 70 |
Short-term vacation rental The villa's price of €1,995,000 represents an 18.4% premium over its fair value of €1,685,460, which impacts the potential return for short-term rental investments. With a gross yield of only 3.6%, this property may not achieve the cash flow needed to offset its above-market pricing in a competitive vacation rental market. Buy-and-hold Investing in this 5-bed villa at €1,995,000 presents challenges due to its significant overvaluation relative to the fair value of €1,685,460, creating potential long-term risks. The limited gross yield of 3.6% suggests that the property may not generate sufficient income growth compared to its high entry cost, making it a questionable buy-and-hold asset. Family rental At €1,995,000, the villa is marked at 18.4% above its fair value of €1,685,460, representing a financial burden for a family rental investment. With a yield of just 3.6%, this property may struggle to attract long-term tenants due to its inflated pricing within the housing market. Not ideal for: Luxury market, Student housing, Value-add renovation These strategies are not recommended as the property is priced excessively at €1,995,000, impacting its suitability for luxury buyers, students, or potential renovations. The overall market conditions and the property's current condition do not offer advantageous opportunities in these segments.
Economic Vulnerability The property may face challenges due to an economic stability score of 65/100, indicating potential fluctuations in market conditions that could affect investment returns.
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