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.
2-bedroom, 1-bathroom house of 118 m². Located Paderne parish, Albufeira municipality, Faro district. The property offers exceptional panoramic views over the surrounding natural park, making it ideal for those desiring a tranquil retreat with vast potential for development and tourism investments.
The valuation. The asking price of €300,000 is substantially below the fair value of €374,486, representing a difference of €74,486 (19.9%). This property is clearly underpriced in the current market. Buy-to-flip angle. The property presents a profitable buy-to-flip opportunity given its poor condition; renovations could significantly increase its appeal, targeting a resale price reflecting local market trends. Buy-to-let angle. With a gross yield of 4.3%, the property can generate approximately €1,075 per month through long-term rentals. Its location in a sought-after tourist area enhances its rental income potential.
Fair value modelled at €374,486 from 6 comparable sales in the area. Asking €300,000 sits €74,486 (19.9%) below — the upside to fair value.
Asking €300,000 versus the Paderne, Albufeira, Faro area baseline of €386,872 (€3,279/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 10/100 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 €386,872, adjusted for condition and micro-location, gives a modelled fair value of €374,486 (€3,174/m²), a €74,486 (19.9%) gap versus the €300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Paderne · 3a7174 | Subject | €300,000 | €2,542 | — | — | 70 |
| Paderne · 225c0c | Active | €150,000 | €1,190 | 53.2% | 15 | 75 |
| Paderne · ba5946 | Active | €365,000 | €3,614 | 42.1% | — | 72 |
| Paderne · 86cdb9 | Active | €500,000 | €3,125 | 22.9% | 30 | 58 |
| Paderne · f10bcf | Active | €439,000 | €5,354 | 110.6% | 56 | 69 |
| Median comp | €402,000 | €3,370 | 32.5% | 30 | 71 |
Short-term vacation rental This property, listed at €300,000, is strategically positioned in a popular tourist destination of the Algarve, aligning well with the growing demand for short-term rentals. With a fair value of €374,486 and a yield of 4.3%, it presents an attractive opportunity to capitalize on seasonal tourism influx. Buy-and-hold With a fair value gap of 19.9%, this property offers a solid investment for a buy-and-hold strategy, as it can appreciate in value over time due to its prime location in a tourist hotspot. The strong fundamentals of the neighborhood, coupled with a reasonable yield, enhance its appeal for long-term ownership. Long-term rental While not ideal for student housing, this property can serve well in the long-term rental market, especially given its favorable location in Albufeira. The neighbourhood's decent quality ratings suggest reliable tenant demand, which is advantageous for steady rental income despite the property’s current condition rating of 10/100.
Economic Downturn Risk With an economic stability score of 60/100, there is a potential risk of financial instability impacting tenant retention and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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