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.
2-bedroom, 1-bathroom house of 74 m², built in 1985, energy rating E. Located on autoestrada N264, 484, Algoz e Tunes parish, Silves municipality, Faro district. Noteworthy Features: The property includes an orange grove and extensive agricultural land, providing opportunities for sustainable living or cultivation. Potential: Currently lacks a habitation license, but application is in progress.
The valuation. The asking price of €325,000 is significantly above its fair value of €124,717, equating to an overpricing of €200,283 (61.6%). This suggests the property is not a viable investment based on current market conditions.
Fair value modelled at €124,717 from the area baseline, adjusted for condition and location. Asking €325,000 sits €200,283 (61.6%) above — overpriced versus fair value.
Asking €325,000 versus the autoestrada N264, 484 area baseline of €229,252 (€3,098/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 54/100 (Condition 50 · Materials 55 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
autoestrada N264, 484
Area baseline €229,252 + condition -€23,934 + location +€11,011 = modelled fair value of €124,717 (€1,685/m²), a €200,283 (61.6%) gap versus the €325,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| autoestrada N264, 484 | Subject | €325,000 | €4,392 | — | 50 | 70 |
| Algoz e Tunes · 25f4cf | Active | €465,000 | €4,895 | 11.4% | — | 72 |
| Algoz e Tunes · 261ecb | Active | €363,000 | €2,927 | 33.3% | 73 | 70 |
| Algoz e Tunes · ba3ea6 | Active | €239,500 | €3,863 | 12.0% | — | 64 |
| Algoz e Tunes · 4ba651 | Active | €280,000 | €1,530 | 65.2% | — | 71 |
| Median comp | €321,500 | €3,395 | 22.7% | 73 | 71 |
Short-term vacation rental The property’s high listing price of €325,000 compared to a fair value of €124,717 indicates a substantial overpricing of 61.6%. With a gross yield of only 3.5%, the investment potential in the short-term rental market is limited, especially when considering the condition and neighborhood ratings of 54/100 and 70/100, respectively. Buy-and-hold While the house is situated in the Algarve, a region known for its tourism-related economic stability, the stark gap between the listing price and fair value suggests a poor long-term investment. The 3.5% gross yield fails to justify the high purchase price, making it a less attractive option for buy-and-hold investors seeking reliable returns. Value-add renovation A value-add renovation strategy would typically aim to enhance property value; however, the current listing price of €325,000 significantly exceeds the fair market value of €124,717, marking it as overpriced. With both a modest condition score of 54/100 and a gross yield of only 3.5%, the renovation potential does not warrant such an inflated investment cost.
Economic and Tenant Instability Risk The property faces a heightened risk of vacancy or rental income instability due to both the economic stability and tenant stability scores being at 65/100, indicating potential fluctuations in demand and tenant reliability.
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