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.
5-bedroom, 3-bathroom house of 650 m², built in 1992, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: This property boasts a luxurious wellness area in the basement with a sauna and jacuzzi, and a private orchard enhancing the outdoor space's charm.
The valuation. The asking price of €3,950,000 sits slightly below the fair value of €4,016,047, representing a difference of just €66,047 or 1.6%. Overall, this property is considered to be fairly priced in the current market. Buy-to-flip angle. The resale strategy focuses on capturing the high demand for luxury properties in Albufeira, targeting short-term buyers who are willing to pay a premium for a well-finished home. The goal is to leverage the estimated fair value during a potential resale. Buy-to-let angle. With an estimated rental income of €7,571 per month, the property offers a gross yield of 2.3%. This is appealing for long-term rental strategies, particularly in a market driven by tourism demand, thanks to its high-quality finishes and desirable location.
Fair value modelled at €4,016,047 from 6 comparable sales in the area. Asking €3,950,000 sits €66,047 (1.6%) below — the upside to fair value.
Asking €3,950,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €3,340,124 (€5,139/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €3,340,124, adjusted for condition and micro-location, gives a modelled fair value of €4,016,047 (€6,179/m²), a €66,047 (1.6%) gap versus the €3,950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · e55384 | Subject | €3,950,000 | €6,077 | — | 84 | 63 |
| caminho do Monte, 9 | Active | €2,000,000 | €10,101 | 66.2% | 87 | 72 |
| rua da Escola Velha | Active | €1,950,000 | €5,769 | 5.1% | 77 | 69 |
| rua do Pacifico | Active | €975,000 | €6,588 | 8.4% | 75 | 62 |
| estrada de Albufeira | Active | €899,500 | €5,025 | 17.3% | 72 | 71 |
| Median comp | €1,462,500 | €6,179 | 1.7% | 76 | 70 |
Short-term vacation rental Given the strong tourism-driven demand in Albufeira, this property could serve well in the short-term vacation rental market. However, with a relatively low gross yield of 2.3%, the property may not offer optimal returns for investors seeking immediate cash flow. Long-term rental The property may be suitable for long-term rental due to its location in a popular tourist area; however, the 63/100 neighborhood rating indicates potential challenges in tenant quality and demand sustainability. With a fair value close to the listing price, the investment might not provide significant upside potential in cash flow generation. Buy-and-hold Investing in this property for a buy-and-hold strategy could yield moderate appreciation given its appeal within the tourist market, yet the fair valuation suggests limited room for resale gains. Additionally, the 2.3% yield may not align with aggressive growth expectations in the long-term real estate horizon.
Economic and tenant instability risk The property has an economic stability score of 55/100 and tenant stability score of 65/100, indicating potential vulnerabilities in both market demand and tenant retention that could impact rental income 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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