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, 2-bathroom country_house of 145 m², energy rating D. Located on rua 1° de Maio, Santa Catarina da Fonte do Bispo parish, Tavira municipality, Faro district. Noteworthy Features: This estate includes an additional ruin for potential expansion and boasts a private borehole for sustainable water supply, enhancing its rural appeal and functionality.
The valuation. The asking price of €395,000 is below the fair value of €414,849, representing a difference of €19,849 (5.0%). This property is underpriced based on its current market analysis.
Fair value modelled at €414,849 from the area baseline, adjusted for condition and location. Asking €395,000 sits €19,849 (5.0%) below — the upside to fair value.
Asking €395,000 versus the rua 1° de Maio area baseline of €394,110 (€2,718/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 73 · Materials 78 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua 1° de Maio
Area baseline €394,110 + condition +€3,398 + location +€17,341 = modelled fair value of €414,849 (€2,861/m²), a €19,849 (5.0%) gap versus the €395,000 asking price.
Short-term vacation rental The property presents an attractive opportunity as a short-term vacation rental, with a fair value indicating a potential 5.0% gap to capitalize on. Given the area's dependence on seasonal tourism in the Algarve, this could yield favorable returns during peak travel seasons. Family rental As a family rental, this property benefits from its size and the nearby amenities, appealing to families seeking longer-term accommodations in a serene environment. With a fair value slightly higher than the listing price, it offers an opportunity for consistent rental income despite the current market condition. Long-term rental The property is also suited for long-term rental, particularly given its decent condition and moderate neighborhood rating. While the yield is currently 0%, the alignment with fair value suggests stability in rental pricing moving forward. Not ideal for student housing Due to the property's location and the characteristics of the neighborhood, it is not ideal for student housing, where higher tenant turnover is common. The area's amenities and demographic suggest a more stable rental market suited to families or long-term tenants. Not ideal for luxury market This property does not cater to the luxury market, evidenced by its neighborhood score and overall condition, which suggests a more modest appeal. The potential buyers in this segment are likely looking for higher-end features and attractions that this property currently lacks. Not ideal for buy-and-hold The property is not a fitting choice for a buy-and-hold strategy due to its stagnant yield of 0%, which does not align with a typical long-term investment return expectation. Moreover, the current fair value shows limited upside potential for substantial growth over time.
Economic Vulnerability With an economic stability score of 55/100 and a tenant stability score of 60/100, there is a heightened risk of fluctuations in rental income and potential tenant turnover, which may negatively affect cash flow.
