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 199 m², energy rating D. Located on rua Dom Sebastião S / N, Sagres parish, Vila do Bispo municipality, Faro district. Highlight: This property features a spacious living room with a fireplace, enhancing its cozy atmosphere for both relaxation and entertainment, complemented by well-maintained gardens and a barbecue area.
The valuation. The asking price of €760,000 is significantly above the fair value of €377,037, representing a 50.4% premium. This property is clearly overpriced and not a viable financial opportunity.
Fair value modelled at €377,037 from the area baseline, adjusted for condition and location. Asking €760,000 sits €382,963 (50.4%) above — overpriced versus fair value.
Asking €760,000 versus the rua Dom Sebastião S / N area baseline of €634,611 (€3,189/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 74 · Materials 79 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 80 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Dom Sebastião S / N
Area baseline €634,611 + condition +€5,286 + location +€30,068 = modelled fair value of €377,037 (€1,895/m²), a €382,963 (50.4%) gap versus the €760,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Dom Sebastião S / N | Subject | €760,000 | €3,819 | — | 74 | 72 |
| Budens · 65a70e | Active | €445,000 | €3,272 | 14.3% | 75 | 74 |
| Budens · 4b92a5 | Active | €625,000 | €4,630 | 21.2% | 79 | 73 |
| Luz · 956aad | Active | €495,000 | €4,125 | 8.0% | 70 | 73 |
| Vila do Bispo e Raposeira · 96c4aa | Active | €600,000 | €4,839 | 26.7% | 72 | 71 |
| Median comp | €547,500 | €4,378 | 14.6% | 74 | 73 |
Short-term vacation rental The property’s listing at €760,000 significantly exceeds its fair value of €377,037, suggesting that the investment is overpriced despite the strong demand for vacation rentals in the Algarve. With a gross yield of 6.3%, this house may not generate the anticipated returns due to high initial costs. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable, given its substantial overpricing of 50.4% against the fair value of €377,037. Long-term appreciation may be hindered by the current market conditions and pricing. Long-term rental The long-term rental strategy is also compromised by the property being overpriced at €760,000, compared to its fair value of €377,037, resulting in a concerning potential return on investment. Even with decent neighborhood ratings, the acquisition cost limits financial viability for sustained rental income.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of market fluctuations that could affect demand and rental income stability.
