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 villa of 321 m², energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. This villa features a saltwater pool with a massage area and an orchard nestled within mature landscaped gardens, enhancing its appeal as a private retreat.
The valuation. The asking price of €4,850,000 sits significantly above the fair value of €2,085,167, reflecting an overpricing of €2,764,833 (132.6%). This property does not offer value for investors based on current market conditions.
Fair value modelled at €2,085,167 from 6 comparable sales in the area. Asking €4,850,000 sits €2,764,833 (132.6%) above — overpriced versus fair value.
Asking €4,850,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €1,777,203 (€5,536/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,777,203, adjusted for condition and micro-location, gives a modelled fair value of €2,085,167 (€6,496/m²), a €2,764,833 (132.6%) gap versus the €4,850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 9af8f4 | Subject | €4,850,000 | €15,109 | — | 92 | 74 |
| Albufeira e Olhos de Água · 83116e | Active | €2,875,000 | €12,950 | 14.3% | — | 76 |
| Albufeira e Olhos de Água · b329b7 | Active | €1,990,000 | €7,057 | 53.3% | 75 | 65 |
| rua Bartolomeu Dias | Active | €846,000 | €4,338 | 71.3% | 75 | 71 |
| rua 5 de Outubro, 39 | Active | €730,000 | €5,935 | 60.7% | 75 | 68 |
| Median comp | €1,418,000 | €6,496 | 57.0% | 75 | 70 |
Short-term vacation rental Despite the Algarve's popularity as a tourist destination, the 3-bed villa in Albufeira e Olhos de Água is overpriced, with a significant gap of 132.6% above fair value. At a gross yield of 0%, investing in this property for short-term rentals would not be financially viable. Long-term rental While the neighborhood in Albufeira has amenities and decent tenant quality, the villa's listing price of €4,850,000 presents an excessive cost, far exceeding the estimated fair value. This results in no potential rental yield, making it an unattractive option for long-term rental investment. Buy-and-hold Although the region boasts a vibrant tourism-driven economy, the villa's price is inflated, leading to no expected return on investment over the buy-and-hold strategy. With fair value estimated significantly lower, the prospect of capital appreciation diminishes when acquiring this property at its current price. Not ideal for: Student housing The local amenities and housing market do not sufficiently support the student demographic, and given the property's overpriced status, it stands as a poor investment choice for this segment. Not ideal for: Industrial investment With a focus on tourism and residential lifestyles, this property is not positioned to meet the needs of industrial investment; its overpriced nature further complicates potential returns in this area.
Economic Vulnerability The economic stability score of 65/100 indicates a potential risk in economic fluctuations that could impact tenant demand and rental income.
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