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 188 m², built in 2002, energy rating D. Located on rua Joaquim Agostinho, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property includes a spacious office on the second floor, ideal for remote work, and a terrace equipped with a barbecue for outdoor dining and entertainment.
The valuation. The asking price of €493,000 is significantly above the fair value of €390,906, indicating an overvaluation of €102,094 (26.1%). This property is therefore considered overpriced.
Fair value modelled at €390,906 from 6 comparable sales in the area. Asking €493,000 sits €102,094 (26.1%) above — overpriced versus fair value.
Asking €493,000 versus the rua Joaquim Agostinho area baseline of €235,740 (€1,254/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 €235,740, adjusted for condition and micro-location, gives a modelled fair value of €390,906 (€2,079/m²), a €102,094 (26.1%) gap versus the €493,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Joaquim Agostinho | Subject | €493,000 | €2,622 | — | 76 | 72 |
| via External Staircase Investment Potential | Active | €890,000 | €890 | 66.1% | 76 | 76 |
| rua do Castelinho, 1 | Active | €649,000 | €1,997 | 23.8% | 72 | 72 |
| Albufeira e Olhos de Água · 0dcf1a | Active | €750,000 | €833 | 68.2% | 75 | 71 |
| Albufeira e Olhos de Água · 0238ea | Active | €575,000 | €2,162 | 17.6% | 72 | 72 |
| Median comp | €699,500 | €1,444 | 45.0% | 74 | 72 |
Short-term vacation rental The property is overpriced at €493,000, with a fair value of €390,906, indicating a 26.1% premium that reduces potential profitability. Although the location in Algarve's tourist zone offers consistent demand, the high entry cost limits attractive yields for vacation rental investors. Buy-and-hold Investing in this property as a buy-and-hold strategy is unadvisable due to its overpriced nature, which may hinder long-term appreciation potential. The fair value gap suggests that initial returns may lag behind more competitively priced alternatives in the market. Long-term rental The long-term rental market presents challenges with this property being overpriced, diminishing the viability of solid cash flow outcomes. With a gross yield of 5.2%, the current valuation suggests limited appeal to long-term investors seeking favorable returns based on property value. Not ideal for The property's profile does not suit student housing, given the demand dynamics and higher costs, as well as the luxury market where the premium may not justify the appeal. Additionally, industrial development is not feasible due to the location's focus on tourism and residential use.
[Economic vulnerability] With an economic stability score of 70/100 and a tenant stability score of 65/100, there is a risk of fluctuating income due to potential instability in the local economic conditions and tenant retention.
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