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, 4-bathroom house of 294 m², built in 2007, energy rating D. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. Noteworthy Features: The property includes a fully equipped cinema room in the basement, providing an entertainment space not typically found in similar homes in the area.
The valuation. The asking price of €820,000 sits €70,678 (9.4%) above the fair value of €749,322, indicating the property is aligned with the market, presenting a fair investment opportunity. Buy-to-flip angle. The buy-to-flip strategy capitalizes on the property’s premium finishes and location, allowing for an attractive resale after minor cosmetic updates in a thriving tourist market. Buy-to-let angle. The rental income strategy targets short-term vacation rentals, leveraging the estimated gross yield of 6%, generating approximately €4,100 per month in a desirable area of Algarve.
Fair value modelled at €749,322 from 6 comparable sales in the area. Asking €820,000 sits €70,678 (9.4%) above — overpriced versus fair value.
Asking €820,000 versus the Albufeira e Olhos de Água, Albufeira, Faro area baseline of €534,320 (€1,817/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €534,320, adjusted for condition and micro-location, gives a modelled fair value of €749,322 (€2,549/m²), a €70,678 (9.4%) gap versus the €820,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Albufeira e Olhos de Água · 0ad04b | Subject | €820,000 | €2,789 | — | 82 | 74 |
| Albufeira e Olhos de Água · 99f3cd | Active | €589,000 | €2,539 | 9.0% | 72 | 70 |
| rua do Castelinho, 1 | Active | €649,000 | €1,997 | 28.4% | 72 | 72 |
| rua Teixeira de Pascoais | Active | €1,200,000 | €2,559 | 8.3% | 75 | 72 |
| Albufeira e Olhos de Água · ba5b1b | Active | €525,000 | €1,981 | 29.0% | 75 | 73 |
| Median comp | €619,000 | €2,268 | 18.7% | 74 | 72 |
Short-term vacation rental The property is situated in the Algarve region, making it a potential market for vacation rentals due to its proximity to tourist attractions. However, with a fair value gap of 9.4%, the investment may not offer substantial returns compared to other properties in the area. Long-term rental The gross yield of 6% reflects a decent potential income stream for long-term rental purposes in a neighborhood rated 74/100. Nonetheless, with a fair value close to the listing price, the opportunity for significant capital appreciation may be limited. Buy-and-hold While the property holds promise as a buy-and-hold investment given its size and good condition rating of 80/100, its fair value position suggests that it may not significantly appreciate over time. Thus, potential investors should be cautious, as the market may offer better alternatives with a greater upside potential.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to market fluctuations that could affect rental income.
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