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 79 m², energy rating G. Located on rua 26 de Janeiro, Castro Marim parish, Castro Marim municipality, Faro district. The first-floor terrace offers panoramic views of the historic Castro Marim Castle, enhancing the property's appeal for outdoor relaxation and entertainment.
The valuation. The asking price of €145,000 sits significantly below the fair value of €206,295, representing a discount of €61,295 (42.3%). This property is clearly subvalued compared to market expectations.
Fair value modelled at €206,295 from the area baseline, adjusted for condition and location. Asking €145,000 sits €61,295 (42.3%) below — the upside to fair value.
Asking €145,000 versus the rua 26 de Janeiro area baseline of €235,183 (€2,977/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 46/100 (Condition 42 · Materials 48 · Room dimensions 50). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 58/100 (Housing Market 60 · Amenities 60 · Economic 50 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua 26 de Janeiro
Area baseline €235,183 + condition -€36,414 + location +€7,526 = modelled fair value of €206,295 (€2,611/m²), a €61,295 (42.3%) gap versus the €145,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua 26 de Janeiro | Subject | €145,000 | €1,835 | — | 42 | 58 |
| Castro Marim · 937291 | Active | €675,000 | €3,994 | 117.6% | 68 | 58 |
| rua do Sapal | Active | €279,900 | €2,043 | 11.3% | — | 57 |
| Castro Marim · 99f212 | Active | €620,000 | €2,818 | 53.5% | 75 | 49 |
| urbanização Horta do Vinagre Centro de Castro Marim | Active | €240,000 | €2,526 | 37.6% | 75 | 71 |
| Median comp | €449,950 | €2,672 | 45.6% | 75 | 58 |
Long-term rental This 2-bed house in Castro Marim presents an attractive yield of 6.5%, making it a compelling option for long-term rental investment in a rural Algarve area affected by tourism patterns. The relatively low listing price compared to its fair value indicates a strong opportunity to generate sustainable cash flow over time. Short-term vacation rental Given the tourism influence in Castro Marim, this property is well-positioned for the short-term vacation rental market, leveraging the area's appeal to visitors. With the property being undervalued at €145,000 relative to its fair value of €206,295, the potential for high occupancy rates and attractive returns is significant.
Economic Vulnerability With an economic stability score of 50/100, there is a heightened risk of financial fluctuations that could impact rental income and property value.
