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 house of 589 m², energy rating E. Located on praceta da Torre Velha, 5, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property's exquisite outdoor area includes a private saltwater pool, a garden with diverse leisure spots, and multiple terraces perfect for enjoying the Algarvian climate and sea views.
The valuation. The asking price of €1,475,000 sits €295,927 (16.7%) below the fair value of €1,770,927, indicating that the property is notably underpriced for its market segment.
Fair value modelled at €1,770,927 from 6 comparable sales in the area. Asking €1,475,000 sits €295,927 (16.7%) below — the upside to fair value.
Asking €1,475,000 versus the praceta da Torre Velha, 5 area baseline of €1,285,006 (€2,182/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €1,285,006, adjusted for condition and micro-location, gives a modelled fair value of €1,770,927 (€3,007/m²), a €295,927 (16.7%) gap versus the €1,475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| praceta da Torre Velha, 5 | Subject | €1,475,000 | €2,504 | — | 82 | 73 |
| Guia · 19f76d | Active | €595,000 | €2,833 | 13.1% | 78 | 70 |
| Albufeira e Olhos de Água · 0dcf1a | Active | €750,000 | €833 | 66.7% | 75 | 71 |
| Albufeira e Olhos de Água · cc9a07 | Active | €795,000 | €3,369 | 34.5% | — | 67 |
| estrada de Vale Rabelho, 296N | Active | €1,590,000 | €3,180 | 27.0% | 74 | 63 |
| Median comp | €772,500 | €3,007 | 20.1% | 75 | 69 |
Short-term vacation rental The property offers great potential for a short-term vacation rental given its location in the Algarve, a highly sought-after tourist region. With a fair value of €1,770,927 compared to the listing price of €1,475,000, this presents a compelling opportunity with a 16.7% gap to fair value. Long-term rental Investing in long-term rental could be beneficial due to the area's strong tourist economy, which ensures a steady demand for housing. The property’s condition rating of 79/100 further supports the investment potential, enhancing its attractiveness for long-term tenants. Buy-and-hold This property is suitable for a buy-and-hold strategy as it is located in a desirable neighborhood, with the tourism industry contributing positively to future value appreciation. The 16.7% gap to fair value indicates a favorable position for long-term capital growth, despite a current yield of 0% gross. Not ideal for: The property is not suitable for student housing or luxury market investments, as the tenant quality and neighborhood dimensions do not align with those segments. Additionally, its characteristics do not lend themselves to industrial investment opportunities.
Tenant turnover risk The tenant stability score of 70/100 suggests a moderate likelihood of turnover, which could lead to potential vacancies and loss of rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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