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, 5-bathroom villa of 500 m², built in 2008, energy rating C. Located on estrada de Vale Rabelho, 296N, Guia parish, Albufeira municipality, Faro district. Noteworthy Features: This villa features a private garage and basement for versatile use, while its south-facing orientation enhances natural light and offers serene countryside and distant sea views.
The valuation. The asking price of €1,590,000 sits significantly below the fair value of €2,100,167, representing a discount of €510,167 (24.3%). This presents an attractive opportunity for buyers looking to invest.
Fair value modelled at €2,100,167 from 6 comparable sales in the area. Asking €1,590,000 sits €510,167 (24.3%) below — the upside to fair value.
Asking €1,590,000 versus the estrada de Vale Rabelho, 296N area baseline of €1,739,626 (€3,479/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €1,739,626, adjusted for condition and micro-location, gives a modelled fair value of €2,100,167 (€4,200/m²), a €510,167 (24.3%) gap versus the €1,590,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de Vale Rabelho, 296N | Subject | €1,590,000 | €3,180 | — | 74 | 63 |
| rua da Vela Latina | Active | €1,300,000 | €4,194 | 31.9% | 80 | 65 |
| Albufeira e Olhos de Água · cc9a07 | Active | €795,000 | €3,369 | 5.9% | — | 67 |
| Albufeira e Olhos de Água · f3627e | Active | €1,450,000 | €4,770 | 50.0% | 90 | 71 |
| rua da Vela Redonda | Active | €1,300,000 | €4,207 | 32.3% | 75 | 72 |
| Median comp | €1,300,000 | €4,201 | 32.1% | 80 | 69 |
Long-term rental This 4-bed villa in Guia, Albufeira is positioned favorably below its fair value, providing a potential opportunity for long-term rental returns aligned with the growing demand in the Algarve region. However, the low gross yield of 1.9% and the mixed neighbourhood scores suggest that while it is an attractive price, it may not be the most lucrative rental investment option. Short-term vacation rental Given the property's attractive pricing relative to its fair value, it presents a unique investment opportunity in the vacation rental market, capitalizing on Algarve's popularity. The villa's condition rating of 77/100 supports the appeal to short-term guests, but the neighbourhood's score of 63/100 may slightly temper this potential. Buy-and-hold Investing in this villa as a buy-and-hold asset is favorable due to its subvalorizada position within the market, indicating potential for value appreciation over time. While the current gross yield stands at 1.9%, the anticipated growth in property demand in the Algarve could enhance long-term returns from this investment. Not ideal for: The property does not cater well to student housing due to location and demographic factors, nor does it fit the high turnover leasing market given its substantial size. Its positioning as a luxury market offering is also limited by the neighbourhood dynamics and tenant quality considerations.
Economic Vulnerability The economic stability score of 55/100 indicates a potential risk due to weaker economic conditions that could affect rental income and property value in the future.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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