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, built in 2024, energy rating B. Located Albufeira e Olhos de Água parish, Albufeira municipality, Faro district. The villa boasts an impressive spa area featuring a Turkish bath and jacuzzi, offering a luxurious retreat with garden views that enhances overall relaxation and wellness.
The asking price sits significantly above our fair value at €4,850,000, which we assess to be €1,280,000, indicating that the property is overpriced. Confidence in this fair value is low. Rental yield. The estimated gross yield is 2.2% (~€8,892/month).
The property's fair value is determined using a combination of two models. The Transaction model, relying on real transaction data from 175 sales in Albufeira e Olhos de Água, accounts for 70% of the value, while the Adjusted asking-price model contributes the remaining 30%. Conservative adjustments were not applied to this property. The resulting fair value is €1,280,000. However, the asking price is €4,850,000, indicating that the asking price is above the fair value, with a 73.6% downside from the asking price. The confidence level in this valuation is low.
Gross yield 2.2% (before costs)
No specific strategy stands out for this property.
Negotiation room: Negotiation context: asking prices in this municipality run about 15% above what similar homes actually sell for, so there is usually room to negotiate
Investors should consider the asking price of €4,850,000, which significantly exceeds the property's fair value of €1,280,000, reflecting a critical 73.6% downside against the asking price. While the villa is located in a desirable tourist area of Algarve and holds a good condition rating of 84/100, these factors do not mitigate the substantial overvaluation indicated. Furthermore, the overall neighbourhood score of 75/100 suggests mixed market dynamics inherent to tourist-driven economies.
Indicative, before costs, vacancy and management. Not investment advice.
Economic and tenant stability risk The economic stability score of 70/100 indicates moderate risk, while the tenant stability score of 75/100 suggests a somewhat stronger position, potentially increasing vulnerability to economic fluctuations affecting rental demand. Fair value certainty risk The valuation is at a fair value of €1,280,000 with low confidence, primarily due to the unavailability of micro-location transaction data and significant discrepancies between estimates, which raises concerns about the property’s actual market value.
Grade AFindings: 0
Confirmed findings from our checks of this listing. They inform; they do not change the valuation.
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Models 3.4.3 (Data quality v3 · Valuation v4.1 · Strategy v3.1)
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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