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 villa of 337 m², built in 1986, energy rating A. Located Algoz e Tunes parish, Silves municipality, Faro district. Noteworthy Feature: The villa offers the unique possibility to construct a pool in its landscaped outdoor area, enhancing leisure and relaxation options for potential buyers.
The valuation. The asking price of €599,000 sits significantly below the fair value of €982,287, representing a discount of €383,287 (39.0%). This property can be confidently classified as underpriced.
Fair value modelled at €982,287 from 5 comparable sales in the area. Asking €599,000 sits €383,287 (39.0%) below — the upside to fair value.
Asking €599,000 versus the Algoz e Tunes, Silves, Faro area baseline of €908,556 (€2,696/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €908,556, adjusted for condition and micro-location, gives a modelled fair value of €982,287 (€2,915/m²), a €383,287 (39.0%) gap versus the €599,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Algoz e Tunes · 5e62c2 | Subject | €599,000 | €1,777 | — | 78 | 63 |
| rua Doutor Nuno Pacheco, 72 | Active | €650,000 | €2,915 | 64.0% | — | 70 |
| Algoz e Tunes · 8313e5 | Active | €620,000 | €3,804 | 114.0% | 78 | 66 |
| urbanização Colina Verde | Active | €650,000 | €2,444 | 37.5% | 75 | 71 |
| Algoz e Tunes · 0900ca | Active | €215,000 | €1,086 | 38.9% | — | 62 |
| Median comp | €635,000 | €2,680 | 50.7% | 77 | 68 |
Long-term rental This property in Algoz e Tunes offers a solid long-term rental yield of 4.6%, which is attractive given the estimated fair value of €982,287. With the property being subvalued at €599,000, it presents a compelling opportunity for generating consistent rental income in a desirable area close to Albufeira. Short-term vacation rental Positioned favorably for the short-term rental market, this villa benefits from its proximity to Albufeira, a popular tourist destination in the Algarve. Given its subvaluation of 39% against its fair value, investors can potentially achieve higher occupancy rates and rental yields. Buy-and-hold As a buy-and-hold investment, this villa's current pricing represents a significant upside for future appreciation, making it a strategic addition to a portfolio. The subvaluation reinforces its potential to grow in value over time while generating steady rental income from a stable neighborhood. Not ideal for student housing The property does not cater well to student housing due to its size and location, which is more attractive to families and vacationers. Thus, its appeal as a long-term rental or vacation home outweighs considerations for the student rental market. Not ideal for luxury market Although the villa is well-maintained with a condition score of 81/100, its valuation does not position it within the luxury market segment. Therefore, it is better suited for mid-range renters or vacationers looking for a comfortable stay in the Algarve.
Economic and Tenant Instability Given the economic stability score of 55, which is below average, and a tenant stability score of 60, there is a risk of fluctuating rental income and potential tenant turnover, increasing the likelihood of vacancies.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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