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.
5-bedroom, 5-bathroom villa of 375 m². Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. This villa features a standout principal suite with panoramic sea views, a freestanding bath, and a private 35 m² terrace, enhancing its luxury appeal.
The valuation. The asking price of €1,500,000 is 52.9% above the fair value of €706,203, indicating that the property is overpriced. Such a significant markup raises concerns regarding potential return on investment.
Fair value modelled at €706,203 from the area baseline, adjusted for condition and location. Asking €1,500,000 sits €793,797 (52.9%) above — overpriced versus fair value.
Asking €1,500,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €643,875 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 84 · Materials 86 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 56/100 (Housing Market 50 · Amenities 55 · Economic 45 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Vila Nova de Cacela, Vila Real de Santo António, Faro
Area baseline €643,875 + condition +€46,875 + location +€15,453 = modelled fair value of €706,203 (€1,883/m²), a €793,797 (52.9%) gap versus the €1,500,000 asking price.
Long-term rental The 5-bed villa in Vila Nova de Cacela is overpriced at €1,500,000, with a significant fair value gap of 52.9% indicating that this investment would yield no returns in the long run. Given the low neighbourhood rating and limited economic opportunities, the prospects for long-term rental income appear unfavorable. Short-term vacation rental Despite the villa's desirability in the Algarve area for short-term vacation rentals, its current price of €1,500,000 suggests it is overpriced by 52.9% compared to its fair value. The lack of gross yield and the average neighbourhood rating indicate that this property may not attract sufficient vacationers to justify the investment cost. Not ideal for student housing The villa's high price and the lack of economic prospects in Vila Nova de Cacela make it an unsuitable investment for student housing. With a neighbourhood rating of only 56/100, it is unlikely to provide the necessary amenities and demand expected for such rental opportunities. Not ideal for luxury market Although the villa has a substantial size and condition rating, its €1,500,000 asking price is excessively high, making it unappealing in the luxury market. The combination of a low yield and average neighbourhood quality signals that even affluent buyers may hesitate to invest at this price point.
Economic Vulnerability With an economic stability score of 45/100, there is a significant risk that local economic conditions could lead to decreased demand and potential income loss for the property.**
