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. This property features a spacious living room with a fireplace, enhancing its cozy atmosphere, while the outdoor spaces include both front and rear gardens ideal for entertaining.
The valuation. The asking price of €760,000 is significantly above the fair value of €407,998, presenting a discrepancy of €352,002 (46.3%). This property is overpriced and may deter potential buyers looking for value. Buy-to-flip angle. The strategy for resale involves refreshing the high-quality finishes, aiming for an appealing presentation in a tourist hotspot, potentially yielding substantial returns if sold at market trends. Buy-to-let angle. By capitalizing on Sagres’ tourism appeal, the estimated rental income of €3,990/month provides a gross yield of 6.3%, promising steady cash flow through short-term vacation rentals or long-term leases.
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 €341,683 (€1,717/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. Full condition report →
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. Full location report →
rua Dom Sebastião S / N
Area baseline €341,683 + 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.
Short-term vacation rental The property is currently overpriced at €760,000 compared to a fair value of €407,998, making it an unsuitable investment for short-term vacation rentals despite the high demand in the Algarve region. With a 6.3% gross yield and neighborhood ratings of 72/100, the potential returns are inadequate when considering the substantial price gap. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its overpriced nature, with a 46.3% gap from the fair value. Although the neighborhood has decent amenities and tenant quality, the acquisition cost exceeds the rational threshold for long-term appreciation. Long-term rental The current listing price suggests that the property is overpriced, which reduces its attractiveness for a long-term rental strategy even with favorable conditions such as a 6.3% yield. Given the fair value of €407,998, the overvaluation significantly hampers the potential for sustained cash flow in the long run.
Moderate economic and tenant volatility The combined economic and tenant stability scores of 65/100 indicate potential for moderate volatility, which may result in fluctuating rental income or tenant turnover affecting profitability.
