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, 2-bathroom house of 150 m², energy rating B. Located on rua do Cerro Grande, 18B, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property boasts a heated pool with a heat pump, and features a barbecue area designed for outdoor dining, enhancing its appeal for entertaining guests.
The valuation. The asking price of €725,000 is just €8,518 or 1.2% above the fair value of €716,482. This property is fairly valued, reflecting the high-quality materials and favourable location.
Fair value modelled at €716,482 from 6 comparable sales in the area. Asking €725,000 sits €8,518 (1.2%) above — overpriced versus fair value.
Asking €725,000 versus the rua do Cerro Grande, 18B area baseline of €585,100 (€3,901/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €585,100, adjusted for condition and micro-location, gives a modelled fair value of €716,482 (€4,777/m²), a €8,518 (1.2%) gap versus the €725,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Cerro Grande, 18B | Subject | €725,000 | €4,833 | — | 78 | 73 |
| rua 5 de Outubro, 39 | Active | €730,000 | €5,935 | 22.8% | 75 | 68 |
| rua Bartolomeu Dias | Active | €846,000 | €4,338 | 10.2% | 75 | 71 |
| caminho do Poço da Ataboeira | Active | €685,000 | €4,628 | 4.2% | 80 | 72 |
| Albufeira e Olhos de Água · b32b18 | Active | €3,100,000 | €9,366 | 93.8% | 85 | 72 |
| Median comp | €788,000 | €5,282 | 9.3% | 78 | 72 |
Short-term vacation rental The property is well-positioned in the Algarve region, which remains a hotspot for tourists, attracting consistent rental demand. With a fair value gap of 1.2% and a gross yield of 3.5%, this investment aligns with market expectations for vacation home rentals. Buy-and-hold Owning this asset could provide stable long-term capital appreciation in a tourist-driven market, despite its current pricing at fair value. Its neighbourhood quality rating of 73/100 indicates a decent environment for potential future value increase within the local economy. Family rental Although the property may appeal to families due to its spacious layout, its valuation remains at fair market pricing, not providing a discount opportunity. The condition rating of 80/100 supports its suitability as a family rental, but the slim margin above fair value suggests cautious consideration for maximizing returns.
Potential Economic Downturn The economic stability score of 68 may indicate vulnerability to market fluctuations, which could 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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