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, 4-bathroom house of 550 m², built in 1986, energy rating E. Located Paderne parish, Albufeira municipality, Faro district. Unique Feature: The property includes a spacious 229m² warehouse suitable for various commercial or creative uses, alongside a panoramic terrace providing stunning views of the surrounding landscape.
The valuation. The asking price of €490,000 is significantly below the fair value of €1,677,665, presenting a disparity of €1,187,665 (70.8%). This property is clearly underpriced given its potential in the market.
Fair value modelled at €1,677,665 from 6 comparable sales in the area. Asking €490,000 sits €1,187,665 (70.8%) below — the upside to fair value.
Asking €490,000 versus the Paderne, Albufeira, Faro area baseline of €1,607,441 (€2,923/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 59/100 is below the parish average, reducing 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 €1,607,441, adjusted for condition and micro-location, gives a modelled fair value of €1,677,665 (€3,050/m²), a €1,187,665 (70.8%) gap versus the €490,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Paderne · e8355e | Subject | €490,000 | €891 | — | 62 | 69 |
| autoestrada EM1176 | Active | €490,000 | €1,701 | 91.0% | 68 | 66 |
| autoestrada EM1173 | Active | €455,000 | €2,758 | 209.5% | 74 | 74 |
| Paderne · 03251b | Active | €510,000 | €3,542 | 297.5% | 67 | 71 |
| Paderne · ba5974 | Active | €550,000 | €1,355 | 52.1% | 72 | 65 |
| Median comp | €500,000 | €2,230 | 150.3% | 70 | 69 |
Short-term vacation rental The property in Paderne is well-positioned for short-term vacation rentals, capitalizing on the robust tourism sector that drives local demand. With a fair value significantly higher than the listing price, this investment offers a compelling opportunity for income generation through vacation rentals. Buy-and-hold Acquiring this property as a buy-and-hold investment makes sense given its considerable gap to fair value, which indicates strong potential for future appreciation. As tourism continues to thrive in the Algarve, the long-term value of this property is likely to increase, making it a sound addition to a real estate portfolio. Value-add renovation Investing in value-add renovations could enhance the property’s appeal and condition, creating additional value while capturing a portion of the 70.8% gap to fair value. By improving the status of the property, an investor can both increase rental income potential and ultimately realize substantial profit upon resale.
Economic Volatility Risk The economic stability score of 60/100 indicates a moderate level of economic risk, which may lead to potential fluctuations in 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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