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.
4-bedroom, 3-bathroom villa of 115 m². Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. The basement features a multi-functional space which could serve as a home gym or entertainment area, adding versatility beyond the generous living spaces above.
The valuation. The asking price of €1,250,000 is significantly above the fair value of €623,750, presenting an overpriced situation at 100.4% of fair value. This elevated pricing may deter potential buyers seeking a reasonable investment opportunity.
Fair value modelled at €623,750 from 6 comparable sales in the area. Asking €1,250,000 sits €626,250 (100.4%) above — overpriced versus fair value.
Asking €1,250,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €530,898 (€4,617/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €530,898, adjusted for condition and micro-location, gives a modelled fair value of €623,750 (€5,424/m²), a €626,250 (100.4%) gap versus the €1,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 53cd25 | Subject | €1,250,000 | €10,870 | — | 80 | 76 |
| Albufeira e Olhos de Água · 653048 | Active | €1,150,000 | €6,805 | 37.4% | 81 | 70 |
| rua do Golfe S / N | Active | €1,449,000 | €4,557 | 58.1% | 75 | 71 |
| Albufeira e Olhos de Água · a80852 | Active | €940,000 | €6,267 | 42.3% | 75 | 74 |
| Albufeira e Olhos de Água · da46a0 | Active | €1,382,000 | €8,275 | 23.9% | 80 | 71 |
| Median comp | €1,266,000 | €6,536 | 39.9% | 78 | 71 |
Short-term vacation rental The 1.5% gross yield on this property, priced at €1,250,000 against a fair value of €623,750, suggests this villa is a poor candidate for short-term vacation rental investment. With a significant 100.4% gap from fair value, the expected returns do not justify the high purchase cost for this market segment. Long-term rental Investing in this property for long-term rental would be unwise, given the excessive price relative to its fair value, leading to meager yields at just 1.5%. The €1,250,000 listing price makes it difficult to achieve the rental income necessary to cover the investment costs effectively. Buy-and-hold A buy-and-hold strategy would falter with this villa, as the listing price reflects overpricing that limits future capital appreciation potential. With a fair value of only €623,750, the property’s entry cost fails to align with long-term investment goals. Not ideal for: Student housing The overall condition and market positioning of this villa make it unsuitable for conversion to student housing, which typically requires more economically viable options. This property’s pricing further exacerbates its incompatibility with the typical student housing market dynamics.
Potential Economic Downturn The economic stability score of 70 suggests a moderate risk of downturn, which could negatively impact rental income and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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