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, 0-bathroom house of 340 m². Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This centenary villa offers panoramic views of Peneco beach and the eastern coast, along with substantial development potential despite its current state of disrepair.
The valuation. The asking price of €2,150,000 is significantly below the fair value of €3,111,864, indicating an attractive opportunity for investors, with a difference of €961,864 (30.9%). Verdict: underpriced. Buy-to-flip angle. A buy-and-flip strategy would leverage the property’s undervaluation with potential renovations, appealing to short-term buyers looking for a spacious home or vacation rental in a prime tourist area. Buy-to-let angle. With an estimated monthly rental income of €5,196, this property demonstrates a gross yield of 2.9%, making it suitable for long-term leasing, especially given high tourism demand in the Algarve.
Fair value modelled at €3,111,864 from 6 comparable sales in the area. Asking €2,150,000 sits €961,864 (30.9%) below — the upside to fair value.
Asking €2,150,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €3,340,081 (€9,824/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 15/100 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 €3,340,081, adjusted for condition and micro-location, gives a modelled fair value of €3,111,864 (€9,153/m²), a €961,864 (30.9%) gap versus the €2,150,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · a8020d | Subject | €2,150,000 | €6,324 | — | — | 70 |
| Albufeira e Olhos de Água · ba3e39 | Active | €550,000 | €6,111 | 3.4% | — | 72 |
| Albufeira e Olhos de Água · 99f3f3 | Active | €1,080,000 | €9,153 | 44.7% | — | 73 |
| Albufeira e Olhos de Água · 38a080 | Active | €600,000 | €3,750 | 40.7% | 50 | 62 |
| Albufeira e Olhos de Água · 6271e7 | Active | €7,000,000 | €16,471 | 160.5% | 20 | 68 |
| Median comp | €840,000 | €7,632 | 20.7% | 35 | 70 |
Long-term rental This property in Albufeira e Olhos de Água, listed at €2,150,000 with a fair value of €3,111,864, presents a significant investment opportunity with a 30.9% gap versus fair value. The low yield of 2.9% is offset by the high demand in the Algarve, ensuring steady long-term rental income from the tourist-driven market. Short-term vacation rental With a fair value significantly higher than the listing price, this property can generate attractive returns through short-term vacation rentals, taking advantage of the high tourism-driven demand in the Algarve. The yield of 2.9% reflects the potential for increased revenue as the property is renovated and positioned to attract vacationers. Buy-and-hold Holding onto this real estate in Albufeira e Olhos de Água allows for capital appreciation, as the current listing price is well below its fair value of €3,111,864. This strategy is supported by the ongoing demand in the area, driven by a robust tourism market, ensuring long-term wealth accumulation for investors.
Economic Vulnerability Given a moderate economic stability score of 70/100, there could be fluctuations in the local economy that might affect rental income and property value. Tenant Displacement Risk With a tenant stability score of 75/100, there is a possibility of turnover that may lead to increased vacancy rates during economic downturns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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