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.
2-bedroom, 3-bathroom house of 122 m², energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This villa includes a basement multi-purpose area that can be restored into a separate apartment, providing potential for rental income alongside residential use.
The valuation. The asking price of €390,000 sits €41,211 (11.8%) above the fair value of €348,789, indicating the property is overpriced based on market comparisons. Buyers should consider this discrepancy seriously before making an offer.
Fair value modelled at €348,789 from 6 comparable sales in the area. Asking €390,000 sits €41,211 (11.8%) above — overpriced versus fair value.
Asking €390,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €267,226 (€2,190/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €267,226, adjusted for condition and micro-location, gives a modelled fair value of €348,789 (€2,859/m²), a €41,211 (11.8%) gap versus the €390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 57f79d | Subject | €390,000 | €3,197 | — | 70 | 74 |
| Albufeira e Olhos de Água · 4680e8 | Active | €539,000 | €2,089 | 34.6% | 76 | 70 |
| avenida dos Descobrimentos | Active | €695,000 | €4,696 | 46.9% | 75 | 72 |
| Ferreiras · 6fbc55 | Active | €555,000 | €2,775 | 13.2% | 75 | 78 |
| autoestrada EM526 | Active | €599,000 | €2,162 | 32.4% | 75 | 76 |
| Median comp | €577,000 | €2,469 | 22.8% | 75 | 74 |
Long-term rental This property is overpriced, with a fair value of €348,789 compared to the listing price of €390,000, creating a significant barrier for potential long-term tenants. The gross yield of 4.4% indicates that the investment may not provide sufficient return given the inflated initial cost. Short-term vacation rental Despite its location in a tourist-favored area, the property’s price exceeds its fair value by 11.8%, making it a less attractive option for short-term vacation rentals. The potential rental income may not justify the premium price, leading to challenging returns on investment. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its overpriced status, with a listing price significantly above the fair market value. As rental demand is driven by tourism, the elevated cost may hinder future appreciation and cash flow. Not ideal for This property is not suitable for student housing, as the pricing does not align with the typically lower rental yields in such markets. Additionally, it does not fit luxury market criteria and lacks appeal for industrial investment opportunities.
Economic downturn risk The economic stability score of 68 indicates a potential vulnerability to economic downturns, which may affect tenant payment reliability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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