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.
4-bedroom, 4-bathroom villa of 208 m², built in 2007, energy rating C. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a rooftop terrace that provides panoramic views of Albufeira and the sea, creating a perfect spot for sunset gatherings.
The valuation. The asking price of €1,399,000 is significantly above the fair value of €992,105, exceeding it by €406,895, or 41.0%. This property is considered overpriced in its current market context.
Fair value modelled at €992,105 from 5 comparable sales in the area. Asking €1,399,000 sits €406,895 (41.0%) above — overpriced versus fair value.
Asking €1,399,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €775,741 (€3,730/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €775,741, adjusted for condition and micro-location, gives a modelled fair value of €992,105 (€4,770/m²), a €406,895 (41.0%) gap versus the €1,399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 13389b | Subject | €1,399,000 | €6,726 | — | 82 | 65 |
| rua do Bem Parece | Active | €1,200,000 | €4,762 | 29.2% | 80 | 71 |
| Albufeira e Olhos de Água · b32a12 | Active | €1,450,000 | €4,770 | 29.1% | 88 | 62 |
| rua do Golfe S / N | Active | €1,449,000 | €4,557 | 32.3% | 75 | 71 |
| Guia · 911674 | Active | €1,200,000 | €5,063 | 24.7% | 80 | 73 |
| Median comp | €1,324,500 | €4,766 | 29.1% | 80 | 71 |
Short-term vacation rental This property is overpriced compared to its fair value, with a gap of 41.0%, suggesting that investors may struggle to achieve satisfactory returns in a competitive market. The 1.8% gross yield, combined with a seasonal tourist influx, further emphasizes the risk in relying solely on vacation rental income. Buy-and-hold The high listing price of €1,399,000 significantly exceeds the fair value of €992,105, indicating that future appreciation may not justify this investment. With a 1.8% yield, this property is less likely to support a buy-and-hold strategy effectively due to its overpriced status. Family rental Given the 41.0% gap between the asking price and the fair market value, this property appears overpriced, diminishing its attractiveness for long-term family rental opportunities. The average neighborhood score of 65/100 and low yield of 1.8% suggest that investing in family rentals may not yield desirable returns. Not ideal for: Student housing This property is too expensive relative to its fair value, which could deter student renters who typically seek more affordable housing options. The seasonal nature of the area also limits the attractiveness for stable long-term student housing. Not ideal for: Luxury market At €1,399,000, this villa is priced above its fair value, making it less appealing to luxury buyers who expect properties to meet higher value propositions. Its location and neighborhood ratings do not support its entry into the luxury segment.
Economic vulnerability With an economic stability score of 55/100, there is a significant risk that economic downturns could adversely affect property values and rental income. Tenant turnover risk Given the tenant stability score of 60/100, there's a potential threat of increased vacancies or turnover rates, which could negatively influence cash flow.
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