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, 4-bathroom villa of 239 m², built in 1989, energy rating E. Located Paderne parish, Albufeira municipality, Faro district. This property features a charming wooden guest house nestled among centennial carob trees, offering additional accommodation and a private terrace for relaxation in a serene outdoor setting.
The valuation. The asking price of €870,000 exceeds the assessed fair value of €748,894 by €121,106 (16.2%), making the property overpriced. This discrepancy suggests caution for potential investors considering the current market dynamics.
Fair value modelled at €748,894 from 6 comparable sales in the area. Asking €870,000 sits €121,106 (16.2%) above — overpriced versus fair value.
Asking €870,000 versus the Paderne, Albufeira, Faro area baseline of €688,541 (€2,881/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €688,541, adjusted for condition and micro-location, gives a modelled fair value of €748,894 (€3,133/m²), a €121,106 (16.2%) gap versus the €870,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Paderne · 80025a | Subject | €870,000 | €3,640 | — | 72 | 70 |
| autoestrada EM1176 | Active | €490,000 | €1,701 | 53.3% | 68 | 66 |
| Paderne · 03251b | Active | €510,000 | €3,542 | 2.7% | 67 | 71 |
| autoestrada EM1173 | Active | €455,000 | €2,758 | 24.2% | 74 | 74 |
| Paderne · a6d506 | Active | €565,000 | €3,509 | 3.6% | 73 | 71 |
| Median comp | €500,000 | €3,134 | 13.9% | 71 | 71 |
Short-term vacation rental The property’s pricing at €870,000 represents a significant 16.2% gap above its fair value, making it less attractive for short-term vacation rental investments. Given the gross yield of 6% and the average neighborhood rating of 70/100, potential returns may not compensate for the high acquisition cost. Long-term rental With a fair value of €748,894, the listing price indicates that this villa is overpriced for long-term rental purposes. Although it offers a decent gross yield of 6%, the financial performance may be hindered by the elevated purchase price relative to the market value. Buy-and-hold The current asking price of €870,000 suggests this villa is overpriced, as it exceeds the fair value by 16.2%. While the property could appreciate over time, the initial investment price is a significant barrier to securing favorable long-term capital appreciation. Not ideal for Student housing, Luxury market, Industrial investments.
Potential Vacancy Risk: Given the Economic stability score of 55/100, there could be challenges in maintaining consistent tenant occupancy due to unpredictable market conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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