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, 3-bathroom house of 170 m², built in 1987, energy rating E. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Investment Opportunity: This property has been converted into three fully separate apartments, each with private entrances and individual utilities, maximizing rental income potential in a sought-after location.
The valuation. The asking price of €595,000 sits significantly lower than the fair value of €926,050, revealing a substantial difference of €331,050 (35.7%). This property is undeniably underpriced, representing a compelling opportunity for investors.
Fair value modelled at €926,050 from 6 comparable sales in the area. Asking €595,000 sits €331,050 (35.7%) below — the upside to fair value.
Asking €595,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €802,768 (€4,722/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €802,768, adjusted for condition and micro-location, gives a modelled fair value of €926,050 (€5,447/m²), a €331,050 (35.7%) gap versus the €595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 3a714d | Subject | €595,000 | €3,500 | — | 76 | 71 |
| rua Júlio Diniz | Active | €1,080,000 | €5,870 | 67.7% | 67 | 74 |
| rua Júlio Diniz S / N | Active | €1,080,000 | €5,870 | 67.7% | 70 | 64 |
| Albufeira e Olhos de Água · 25f8ad | Active | €899,500 | €5,025 | 43.6% | 80 | 71 |
| rua dos Bombeiros Voluntários | Active | €1,490,000 | €4,599 | 31.4% | 70 | 74 |
| Median comp | €1,080,000 | €5,448 | 55.6% | 70 | 73 |
Short-term vacation rental The listing at €595,000 presents a compelling opportunity for a short-term vacation rental, especially given the fair value of €926,050, indicating a significant potential for revenue generation. With a strong tourism influence in the Algarve region and a gross yield of 5.1%, this property is poised for lucrative returns. Buy-and-hold Acquiring this property as a buy-and-hold investment appears advantageous due to the substantial gap from fair value at 35.7%, which suggests long-term appreciation potential. The moderate local economy remains heavily reliant on tourism, enhancing the chances of sustained demand for housing in the area over time. Value-add renovation The property’s current condition rating of 75/100 suggests there is potential for value-add renovations that could significantly increase its value and rental income. Given the fair value assessment of €926,050, strategic improvements could further enhance the investment's profitability and attractiveness in the robust rental market. Not ideal for Student housing The property is not suited for student housing due to the overall market dynamics and demographic trends in the Albufeira region, where the demand is more aligned with vacation rentals. Investing in student housing in this area may not yield optimal returns given the seasonal nature of the local economy. Not ideal for Luxury market This property is not positioned for the luxury market, as its valuation suggests it is underpriced in the comparative market landscape, appealing more to the vacation rental and mid-level buyer segments. Luxury investments in Albufeira often require different characteristics that this property does not fulfill.
Economic Sensitivity Risk: With both an economic stability and tenant stability score of 65/100, there is a heightened risk of economic fluctuations adversely impacting tenant turnover and rental income, leading to potential financial instability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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