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, 3-bathroom house of 100 m², built in 1975, energy rating D. Located on rua das Laranjeiras, 38, Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The villa's expansive sliding glass doors enhance the indoor-outdoor connection, while private parking sets it apart in this beachfront setting. Observações Notáveis: As amplas portas de vidro deslizantes melhoram a conexão entre o interior e o exterior, enquanto o estacionamento privado o destaca neste ambiente à beira-mar.
The valuation. The asking price of €895,000 sits significantly above the fair value of €585,335, representing an overpricing of €309,665 (52.9%). This valuation suggests the property is not a worthwhile investment at its current asking price.
Fair value modelled at €585,335 from 6 comparable sales in the area. Asking €895,000 sits €309,665 (52.9%) above — overpriced versus fair value.
Asking €895,000 versus the rua das Laranjeiras, 38 area baseline of €487,213 (€4,872/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €487,213, adjusted for condition and micro-location, gives a modelled fair value of €585,335 (€5,853/m²), a €309,665 (52.9%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Laranjeiras, 38 | Subject | €895,000 | €8,950 | — | 90 | 75 |
| Albufeira e Olhos de Água · 8341d5 | Active | €750,000 | €4,902 | 45.2% | 72 | 72 |
| Albufeira e Olhos de Água · efdc44 | Active | €1,190,000 | €4,474 | 50.0% | 74 | 68 |
| estrada das Sesmarias, 6 | Active | €925,000 | €8,259 | 7.7% | 72 | 70 |
| Albufeira e Olhos de Água · 57f890 | Active | €680,000 | €4,857 | 45.7% | 76 | 73 |
| Median comp | €837,500 | €4,880 | 45.5% | 73 | 71 |
Long-term rental The property’s yield of 2% gross is low compared to the fair value of €585,335, indicating it is overpriced at €895,000. The high gap of 52.9% compared to fair value suggests that the potential returns do not justify the current asking price in a long-term rental strategy. Short-term vacation rental Despite the attractive touristic location, the property’s high price of €895,000 limits its effectiveness in the short-term vacation rental market, given the fair value is only €585,335. With a substantial gap of 52.9% from fair value, it is likely to underperform in generating competitive rental income. Buy-and-hold The substantial gap of 52.9% between the listing price and its fair value suggests that the investment in this property as a buy-and-hold strategy is not prudent at €895,000. Its overpriced status compared to the fair market value of €585,335 raises concerns about future appreciation potential in this strategy.
Tenant turnover risk With both economic and tenant stability scores at 75/100, there is a risk of moderate tenant turnover, potentially leading to increased vacancy rates and costs associated with re-leasing the property.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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