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.
3-bedroom, 4-bathroom villa of 321 m², built in 2010, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. The villa has a lifetime usufruct of the adjoining coastal land, ensuring unparalleled privacy and openness that enhances its direct beachfront access.
The valuation. The asking price of €5,500,000 is significantly above fair value at €2,137,877, representing an excess of €3,362,123 (157.3%). This property is overpriced. Buy-to-flip angle. A resale or wholesale strategy would require targeting buyers who value luxury high-end materials, yet the current valuation reflects a challenging market entry point for profitable flipping. Buy-to-let angle. With a gross yield of 0% and a strategy focused on short-term vacation rentals, the property would struggle to generate income, given its current price versus potential rental market performance.
Fair value modelled at €2,137,877 from 6 comparable sales in the area. Asking €5,500,000 sits €3,362,123 (157.3%) above — overpriced versus fair value.
Asking €5,500,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €1,717,455 (€5,350/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 93/100 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 €1,717,455, adjusted for condition and micro-location, gives a modelled fair value of €2,137,877 (€6,660/m²), a €3,362,123 (157.3%) gap versus the €5,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · cc99af | Subject | €5,500,000 | €17,134 | — | 92 | 71 |
| rua Sir Cliff Richard | Active | €2,000,000 | €8,511 | 50.3% | 88 | 75 |
| Albufeira e Olhos de Água · b32b18 | Active | €3,100,000 | €9,366 | 45.3% | 85 | 72 |
| Albufeira e Olhos de Água · 3d9904 | Active | €965,000 | €4,347 | 74.6% | 80 | 70 |
| Albufeira e Olhos de Água · 483c81 | Active | €975,000 | €5,132 | 70.1% | 82 | 69 |
| Median comp | €1,487,500 | €6,822 | 60.2% | 84 | 71 |
Short-term vacation rental This property, listed at €5,500,000, is significantly overpriced compared to its fair value of €2,137,877, creating a gap of 157.3%. Even though the Algarve attracts seasonal tourists, the zero gross yield suggests that the short-term rental income potential does not justify this inflated price. Long-term rental At a fair value of €2,137,877, the property is overpriced by 157.3% with a €5,500,000 listing, making it a financially unviable option for long-term rental investments. Additionally, the property’s gross yield of 0% signals a lack of cash flow, discouraging long-term leasing opportunities. Buy-and-hold Investment in this property is unadvisable as it is priced above its fair value by 157.3%, with a listing of €5,500,000 not aligning with potential returns. Holding onto a property with a 0% yield makes it a poor buy-and-hold candidate, given the significant gap from its fair market value.
Economic Vulnerability A score of 65/100 in economic stability indicates potential fluctuations in market conditions that could lead to decreased rental income or vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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