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.
4-bedroom, 4-bathroom villa of 395 m², energy rating D. Located Ferreiras parish, Albufeira municipality, Faro district. This villa features a versatile basement with a game room, bar, and gym, providing extensive entertainment options and additional living space beyond standard expectations.
The valuation. The asking price of €1,275,000 is below the fair value of €1,408,432 by €133,432 (9.5%). This property is fairly valued and aligns well with market expectations. Buy-to-flip angle. With a gross yield of 2.2%, a quick resale strategy leveraging the high demand in the Algarve market would be prudent. Targeting buyers looking for high-quality vacation homes can maximize return. Buy-to-let angle. The estimated rental income of €2,338/month supports a stable cash flow for long-term rental strategies. This property is well-positioned to capitalize on the strong tourism market in Albufeira.
Fair value modelled at €1,408,432 from 6 comparable sales in the area. Asking €1,275,000 sits €133,432 (9.5%) below — the upside to fair value.
Asking €1,275,000 versus the Ferreiras, Albufeira, Faro area baseline of €1,079,063 (€2,732/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €1,079,063, adjusted for condition and micro-location, gives a modelled fair value of €1,408,432 (€3,566/m²), a €133,432 (9.5%) gap versus the €1,275,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferreiras · f10c0d | Subject | €1,275,000 | €3,228 | — | 85 | 83 |
| rua da Escola Velha | Active | €1,950,000 | €5,769 | 78.7% | 77 | 69 |
| Albufeira e Olhos de Água · 28b7df | Active | €590,000 | €3,471 | 7.5% | 75 | 72 |
| avenida das Ilhas, 17 | Active | €799,000 | €3,275 | 1.4% | 72 | 73 |
| Albufeira e Olhos de Água · 6fb9c1 | Active | €615,000 | €3,661 | 13.4% | 82 | 75 |
| Median comp | €707,000 | €3,566 | 10.5% | 76 | 73 |
Short-term vacation rental The villa's location in a popular Algarve tourist area supports a strong demand for short-term vacation rentals, appealing to both domestic and international tourists. With a fair valuation and a gross yield of 2.2%, it offers stable but modest returns in a vibrant rental market. Long-term rental This property can serve as a long-term rental due to its condition rating of 88/100 and a neighborhood quality of 83/100, indicating a desirable living environment. However, the yield of 2.2% may limit its attractiveness for investors seeking higher returns over time. Buy-and-hold The villa's fair valuation implies a balanced market position for buy-and-hold investors, providing potential for appreciation in the well-regarded Algarve area. While the current yield stands at 2.2%, the long-term prospects are supported by ongoing demand from both renters and buyers seeking property in this popular locale.
Economic downturn risk A sudden decline in the economic stability score of 78 could lead to reduced demand for rentals, impacting tenant turnover despite a current tenant stability score of 82.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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