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 villa of 112 m², built in 1984, energy rating C. Located on estrada das Sesmarias, 6, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a heat recovery system in the living room and includes an outdoor dining area, enhancing comfort and usability throughout the year.
The valuation. The asking price of €925,000 exceeds the fair value of €795,779 by €129,221 (16.2%). This property is considered overpriced, reflecting a significant premium over realistic market expectations.
Fair value modelled at €795,779 from 4 comparable sales in the area. Asking €925,000 sits €129,221 (16.2%) above — overpriced versus fair value.
Asking €925,000 versus the estrada das Sesmarias, 6 area baseline of €713,599 (€6,371/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €713,599, adjusted for condition and micro-location, gives a modelled fair value of €795,779 (€7,105/m²), a €129,221 (16.2%) gap versus the €925,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada das Sesmarias, 6 | Subject | €925,000 | €8,259 | — | 72 | 70 |
| Albufeira e Olhos de Água · 8341d5 | Active | €750,000 | €4,902 | 40.6% | 72 | 72 |
| rua das Laranjeiras, 7A | Active | €1,197,500 | €7,484 | 9.4% | 73 | 70 |
| Albufeira e Olhos de Água · 13389b | Active | €1,399,000 | €6,726 | 18.6% | 82 | 65 |
| Albufeira e Olhos de Água · 4bbf71 | Active | €950,000 | €9,500 | 15.0% | 80 | 73 |
| Median comp | €1,073,750 | €7,105 | 14.0% | 77 | 71 |
Long-term rental The villa's listing price of €925,000 is significantly above the fair value of €795,779, resulting in a 16.2% gap that indicates the property is overpriced. With a gross yield of only 2.2%, the long-term rental strategy appears less desirable given the current market conditions. Short-term vacation rental While the villa is located in a prime tourist area, the asking price far exceeds its fair value, suggesting the property is overpriced at €925,000 compared to the fair value of €795,779. The gross yield of 2.2% does not justify the investment for short-term vacation rentals, especially when factoring in maintenance and seasonal demand fluctuations. Buy-and-hold Investing in this villa as a buy-and-hold strategy presents challenges, as the listing price of €925,000 exceeds the fair value of €795,779 by 16.2%, signifying the property is overpriced. Given the current yield of 2.2%, this investment may not generate sufficient returns over the long term, especially in a market dependent on tourism. Not ideal for: Student housing, Luxury market, Industrial development
Economic Fluctuation Risk With an economic stability score of 65/100, there is a medium risk that economic downturns could impact rental demand and property value negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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