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 191 m², energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Unique Feature: Situated on a generous 800 m² plot, the property offers expansive outdoor spaces ideal for creating a custom garden, leisure area, or pool to enhance the Algarve lifestyle.
The valuation. The asking price of €875,000 is significantly below the fair value of €1,196,933, indicating the property is underpriced by €321,933 (26.9%). This creates a compelling opportunity for potential investors.
Fair value modelled at €1,196,933 from 3 comparable sales in the area. Asking €875,000 sits €321,933 (26.9%) below — the upside to fair value.
Asking €875,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €1,036,335 (€5,426/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 €1,036,335, adjusted for condition and micro-location, gives a modelled fair value of €1,196,933 (€6,267/m²), a €321,933 (26.9%) gap versus the €875,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 57f98a | Subject | €875,000 | €4,581 | — | 75 | 60 |
| Albufeira e Olhos de Água · a803bd | Active | €940,000 | €6,267 | 36.8% | 75 | 71 |
| Albufeira e Olhos de Água · a80852 | Active | €940,000 | €6,267 | 36.8% | 75 | 74 |
| Albufeira e Olhos de Água · efdc44 | Active | €1,190,000 | €4,474 | 2.3% | 74 | 68 |
| Median comp | €940,000 | €6,267 | 36.8% | 75 | 71 |
Short-term vacation rental This property is strategically located near popular beaches and attractions in Algarve, ensuring high demand for short-term vacation rentals, particularly given its fair value of €1,196,933 compared to the listing price of €875,000. The gross yield of 2.4% underscores the attractive potential for generating income during peak tourist seasons. Long-term rental Given the property's strong location and the seasonal nature of employment driven by tourism, it has the potential to secure reliable long-term tenants seeking a residential option in a desirable area. With the condition rated at 79/100 and a steady market demand, the property is well-positioned to provide consistent rental income. Buy-and-hold The substantial gap of 26.9% between the listing price and fair value positions this property as a solid buy-and-hold investment, allowing for potential appreciation over time. Its advantageous location combined with the property condition and yield makes it an appealing addition to an investment portfolio focused on sustainable growth.
Inconsistent Tenant Retention Risk The combined economic stability score of 60 and tenant stability score of 55 indicates a potential challenge in retaining tenants, suggesting possible vacancies or turnover which could impact cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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