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 villa of 161 m². Located Paderne parish, Albufeira municipality, Faro district. Unique Feature: The villa includes a private rooftop terrace offering panoramic countryside views, enhancing its appeal as a tranquil outdoor retreat within a secure gated community. Additional Amenities: Residents benefit from two communal pools set amid beautifully landscaped gardens, promoting a family-friendly atmosphere.
The valuation. The asking price of €565,000 is significantly above the fair value of €507,089, representing an overpricing of €57,911 (11.4%). This valuation suggests a lack of investment appeal based on current market conditions.
Fair value modelled at €507,089 from 6 comparable sales in the area. Asking €565,000 sits €57,911 (11.4%) above — overpriced versus fair value.
Asking €565,000 versus the Paderne, Albufeira, Faro area baseline of €469,137 (€2,914/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 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 €469,137, adjusted for condition and micro-location, gives a modelled fair value of €507,089 (€3,150/m²), a €57,911 (11.4%) gap versus the €565,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Paderne · a6d506 | Subject | €565,000 | €3,509 | — | 73 | 71 |
| Paderne · ba5974 | Active | €550,000 | €1,355 | 61.4% | 72 | 65 |
| Paderne · ba583d | Active | €410,000 | €3,596 | 2.5% | 80 | 62 |
| Paderne · 828f67 | Active | €565,000 | €3,870 | 10.3% | 78 | 73 |
| autoestrada EM1173 | Active | €455,000 | €2,758 | 21.4% | 74 | 74 |
| Median comp | €502,500 | €3,177 | 9.5% | 76 | 69 |
Short-term vacation rental The 3-bed villa's proximity to the Algarve coast might make it appealing for short-term vacation rentals, yet its 11.4% gap from fair value indicates a price premium that could reduce profitability. Given the gross yield of 3.8%, investors may find it challenging to cover costs and earn significant returns. Buy-and-hold Although the location benefits from tourism, the villa's current listing of €565,000 exceeds the fair value, which may hinder long-term appreciation and overall investment returns. A gross yield of 3.8% is underwhelming in light of the substantial upfront price, making it less attractive for buy-and-hold investors. Family rental While the villa could appeal to families due to its size and location, the high asking price of €565,000 is not aligned with the fair value assessment of €507,089, suggesting a mismatch in potential rental income versus investment cost. The condition score of 74/100 might attract tenants, but the overpriced nature of the property raises concerns about sustainable cash flow for family rentals.
Economic Vulnerability With an economic stability score of 55/100, there is a risk of declining local economic conditions impacting tenant demand 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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