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.
3-bedroom, 3-bathroom house of 152 m², built in 2009, energy rating B. Located Ferreiras parish, Albufeira municipality, Faro district. The property features a cozy living room with a fireplace, enhancing the warmth and comfort for family gatherings while the outdoor terrace provides ideal space for relaxation and dining.
The valuation. The asking price of €499,000 is significantly below the fair value of €604,860, indicating potential undervaluation by €105,860 (17.5%). This presents a solid opportunity for investors looking to capitalize on market inefficiencies.
Fair value modelled at €604,860 from 6 comparable sales in the area. Asking €499,000 sits €105,860 (17.5%) below — the upside to fair value.
Asking €499,000 versus the Ferreiras, Albufeira, Faro area baseline of €522,860 (€3,440/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €522,860, adjusted for condition and micro-location, gives a modelled fair value of €604,860 (€3,979/m²), a €105,860 (17.5%) gap versus the €499,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Ferreiras · 5e6505 | Subject | €499,000 | €3,283 | — | 72 | 63 |
| rua do Norte | Active | €549,000 | €3,612 | 10.0% | 70 | 71 |
| estrada de Santa Eulália | Active | €1,990,000 | €7,057 | 115.0% | 74 | 74 |
| Ferreiras · 15e2c4 | Active | €550,000 | €3,056 | 6.9% | 75 | 62 |
| Albufeira e Olhos de Água · 83116e | Active | €2,875,000 | €12,950 | 294.5% | — | 76 |
| Median comp | €1,270,000 | €5,335 | 62.5% | 74 | 73 |
Short-term vacation rental The property in Ferreiras, Albufeira, benefits from a robust tourist market, making it an attractive candidate for short-term vacation rentals with a potential yield of 3.9%. Its fair value indicates an opportunity for immediate cash flow generation, given that it is currently priced 17.5% below that value. Buy-and-hold Investing in this 3-bed house as a buy-and-hold strategy is appealing due to the property being subvalued in a sought-after location like the Algarve, which consistently sees a high demand for rentals. The appreciation potential, supported by the current fair value gap, suggests strong long-term growth in property value. Value-add renovation With a condition score of 76/100, this property has inherent equity that could be unlocked through value-add renovations, positioning it for better yields in the future. Renovations could enhance its appeal within the neighborhood, potentially increasing both rental income and overall property valuation in line with the market's fair value. Not ideal for This property is not suitable for student housing or family rentals due to its neighborhood score of 63/100, suggesting limitations in tenant quality and amenities. Additionally, its location in a tourist area is less conducive to luxury market renters, who may seek different characteristics in their housing options.
Moderate Economic Risk The economic stability score of 55/100 suggests potential vulnerability to market fluctuations, which could impact tenant retention and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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