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, 3-bathroom house of 190 m², built in 1968, energy rating F. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property boasts a spacious terrace with spectacular sea views and direct access to the equipped kitchen from the dining area for enhanced outdoor entertaining.
The valuation. The asking price of €1,400,000 is significantly higher than the fair value of €984,917, resulting in an overpriced status of €415,083 (42.1%). This discrepancy indicates a lack of attractive investment potential at the current asking price.
Fair value modelled at €984,917 from 6 comparable sales in the area. Asking €1,400,000 sits €415,083 (42.1%) above — overpriced versus fair value.
Asking €1,400,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €894,280 (€4,707/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 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 €894,280, adjusted for condition and micro-location, gives a modelled fair value of €984,917 (€5,184/m²), a €415,083 (42.1%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 3a715c | Subject | €1,400,000 | €7,368 | — | 72 | 71 |
| rua do Malpique | Active | €630,000 | €4,599 | 37.6% | — | 66 |
| Albufeira e Olhos de Água · 38b5e8 | Active | €1,350,000 | €5,466 | 25.8% | 80 | 74 |
| Albufeira e Olhos de Água · 8341d5 | Active | €750,000 | €4,902 | 33.5% | 72 | 72 |
| Albufeira e Olhos de Água · cc9981 | Active | €5,900,000 | €16,120 | 118.8% | 88 | 67 |
| Median comp | €1,050,000 | €5,184 | 29.6% | 80 | 70 |
Short-term vacation rental The property is currently overpriced by 42.1% compared to its fair value, which diminishes the potential for attractive returns in a short-term vacation rental strategy. With a gross yield of only 1.8%, the existing pricing does not align with the revenue potential given the high tourism in the Algarve region. Buy-and-hold Investing in this property for long-term appreciation is unwise due to its significant overpricing, which stifles future capital gains. The low yield of 1.8% further indicates that holding this property would not likely generate satisfactory returns relative to the investment required. Value-add renovation Although renovations could potentially enhance value, the current price already reflects a 42.1% premium over fair market value, which complicates any return on investment from improvements. With a condition rating of 67/100, significant investment is needed to bring the property up to a competitive level in its overpriced state. Not ideal for the following: Student housing, Luxury market, Long-term rental.
Economic Vulnerability The economic stability score of 68 suggests a moderate risk of fluctuations that could impact rental income and increase 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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