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, 2-bathroom house of 147 m², energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property benefits from external parking for up to four vehicles and a serene garden with mature fruit trees, enhancing both convenience and tranquility.
The valuation. The asking price of €685,000 is 9.2% below the fair value of €754,342, indicating that the property is priced appropriately for the current market conditions. This positions it as a viable investment without the risk of overvaluation.
Fair value modelled at €754,342 from 5 comparable sales in the area. Asking €685,000 sits €69,342 (9.2%) below — the upside to fair value.
Asking €685,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €640,850 (€4,360/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €640,850, adjusted for condition and micro-location, gives a modelled fair value of €754,342 (€5,132/m²), a €69,342 (9.2%) gap versus the €685,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 82904b | Subject | €685,000 | €4,660 | — | 76 | 70 |
| rua do Norte | Active | €549,000 | €3,612 | 22.5% | 70 | 71 |
| Ferreiras · 5e6505 | Active | €499,000 | €3,283 | 29.5% | 72 | 63 |
| Albufeira e Olhos de Água · 483c81 | Active | €975,000 | €5,132 | 10.1% | 82 | 69 |
| rua 5 de Outubro, 39 | Active | €730,000 | €5,935 | 27.4% | 75 | 68 |
| Median comp | €639,500 | €4,372 | 6.2% | 74 | 69 |
Long-term rental The property should generate a yield of 2.5%, which aligns with average returns in the Algarve region, making it a stable long-term rental investment. However, given the fair value assessment of €754,342 versus the listing price of €685,000, it is clear that the investment lacks strong pricing leverage. Short-term vacation rental While the property is positioned in a desirable tourist area of Albufeira, its 2.5% gross yield suggests that short-term rental income may not sufficiently cover costs or deliver exceptional returns. The current listing price reflects a fair valuation, indicating the potential for moderate profitability but limited upside. Buy-and-hold Holding this property might be reasonable given its fair valuation, but the modest yield of 2.5% indicates that capital appreciation may be slow, especially within a fluctuating seasonal market. Hence, while it can serve as a long-term asset, the current pricing does not present an opportunity for significant capital gains over time.
Economic Instability Risk The economic stability score of 65/100 indicates a moderate risk of economic fluctuations that could impact 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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