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.
5-bedroom, 3-bathroom house of 250 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This villa boasts unique Viúva Lamego tiles throughout its design, alongside stunning sea view balconies that enhance the serene atmosphere of the property.
The valuation. The asking price of €1,000,000 stands significantly above its fair value of €900,000, indicating the property is overpriced by €100,000 (11.1%). This discrepancy suggests caution for potential investors. Buy-to-flip angle. A buy-to-flip strategy could involve minor renovations and updates to leverage the property’s high-quality materials in order to enhance appeal, aiming for a profitable resale within a competitive market. Buy-to-let angle. With an estimated gross yield of 5.4% and potential rental income of around €4,500/month, the property offers a reliable buy-to-let opportunity, particularly in the tourism-driven Algarve region.
Fair value modelled at €900,000 from 6 comparable sales in the area. Asking €1,000,000 sits €100,000 (11.1%) above — overpriced versus fair value.
Asking €1,000,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €694,077 (€2,776/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 €694,077, adjusted for condition and micro-location, gives a modelled fair value of €900,000 (€3,600/m²), a €100,000 (11.1%) gap versus the €1,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 3750f4 | Subject | €1,000,000 | €4,000 | — | 72 | 73 |
| Albufeira e Olhos de Água · 25f8ad | Active | €899,500 | €5,025 | 25.6% | 80 | 71 |
| Albufeira e Olhos de Água · a803d6 | Active | €630,000 | €3,600 | 10.0% | 73 | 81 |
| rua Júlio Diniz S / N | Active | €1,080,000 | €5,870 | 46.7% | 70 | 64 |
| avenida das Ilhas, 17 | Active | €799,000 | €3,275 | 18.1% | 72 | 73 |
| Median comp | €849,250 | €4,313 | 7.8% | 73 | 72 |
Short-term vacation rental The property is overpriced by 11.1% compared to its fair value, priced at €1,000,000 against a benchmark of €900,000. With a gross yield of 5.4%, the potential income from short-term rentals may not justify the elevated purchase price, dampening long-term return prospects. Long-term rental Given the property’s 5.4% gross yield and the neighborhood amenities, it may attract reliable tenants; however, the market price remains elevated at €1,000,000. Consequently, the investment risk increases as the property does not provide favorable conditions for long-term cash flow, given its overpriced status. Buy-and-hold While long-term capital appreciation can occur in the tourist-heavy region of Albufeira, this property’s market pricing at €1,000,000 means it is not positioned as an attractive buy-and-hold investment. The potential for value growth is undermined by its valuation being 11.1% above fair value, thereby limiting upside potential for investors looking to hold for the long term.
Economic Risk The property has an economic stability score of 65/100, indicating a potential vulnerability to economic fluctuations that could impact rental income 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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