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, 3-bathroom villa of 112 m². Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Location: Nestled in a cul-de-sac, this villa offers a tranquil environment, perfect for families, while remaining steps away from stunning Algarve beaches and local amenities. Unique Features: The ground floor includes an independent entrance and versatile space, ideal for guests or rental opportunities, enhancing the property's investment potential.
The valuation. The asking price of €925,000 sits significantly above the fair value of €534,211, presenting an overvaluation of €390,789, or 73.2%. This reflects a distinct misalignment between market expectations and property value. Buy-to-flip angle. The buy-to-flip strategy would require significant market appreciation given the current overpriced status to realize a profit upon resale. Without a favorable market shift, this investment may yield minimal returns. Buy-to-let angle. With an estimated gross yield of 2.2%, the property may be suitable for a rental strategy targeting vacationers, generating approximately €1,696 per month. This approach could stabilize cash flow but is contingent on tourism demand.
Fair value modelled at €534,211 from 5 comparable sales in the area. Asking €925,000 sits €390,789 (73.2%) above — overpriced versus fair value.
Asking €925,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €438,259 (€3,913/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €438,259, adjusted for condition and micro-location, gives a modelled fair value of €534,211 (€4,770/m²), a €390,789 (73.2%) gap versus the €925,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · cc9a4f | Subject | €925,000 | €8,259 | — | 75 | 70 |
| Guia · 6c7c27 | Active | €2,700,000 | €17,089 | 106.9% | 85 | 72 |
| estrada das Sesmarias, 1 | Active | €349,000 | €4,205 | 49.1% | 65 | 70 |
| Albufeira e Olhos de Água · 96c6cd | Active | €880,000 | €4,632 | 43.9% | 73 | 70 |
| Albufeira e Olhos de Água · 911780 | Active | €1,999,990 | €6,154 | 25.5% | 73 | 72 |
| Median comp | €1,439,995 | €5,393 | 34.7% | 73 | 71 |
Short-term vacation rental The 3-bed villa listed at €925,000 shows a significant gap of 73.2% compared to its fair value of €534,211, suggesting it is overpriced for a short-term vacation rental strategy. With a gross yield of only 2.2%, the investment is unlikely to generate sufficient returns to justify the purchase price. Buy-and-hold At €925,000, this villa is considerably overpriced compared to its fair value of €534,211, representing a 73.2% discrepancy. The limited yield of 2.2% makes it a less compelling buy-and-hold investment, as the maintenance of the property may not support future appreciation or stable cash flow. Family rental The villa is listed at €925,000, which is 73.2% above its fair value of €534,211, indicating that it is overpriced for a family rental strategy. With a gross yield of just 2.2%, the potential rental income may not adequately cover the investment costs over time.
Moderate economic risk The property has a lower economic stability score of 55/100, which could indicate potential challenges in attracting and maintaining tenants consistently compared to more economically stable areas.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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