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 villa of 260 m², built in 1999, energy rating D. Located Castro Marim parish, Castro Marim municipality, Faro district. Noteworthy Features: The property boasts an impressive main living room with double-height ceilings and a wooden mezzanine perfect for a cozy office or reading nook overlooking the living area.
The valuation. The asking price of €1,400,000 is significantly above fair value, which is €790,368, indicating an overshoot of €609,632 or 43.5%. The property is considered overpriced based on current market conditions.
Fair value modelled at €790,368 from the area baseline, adjusted for condition and location. Asking €1,400,000 sits €609,632 (43.5%) above — overpriced versus fair value.
Asking €1,400,000 versus the Castro Marim, Castro Marim, Faro area baseline of €774,020 (€2,977/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 52/100 (Housing Market 60 · Amenities 50 · Economic 50 · Tenant Quality 50). Strong amenities and housing-market momentum support a premium to baseline.
Castro Marim, Castro Marim, Faro
Area baseline €774,020 + condition +€10,156 + location +€6,192 = modelled fair value of €790,368 (€3,040/m²), a €609,632 (43.5%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Castro Marim · 65a439 | Subject | €1,400,000 | €5,385 | — | 75 | 52 |
| urbanização Praia Verde | Active | €595,000 | €3,967 | 26.3% | — | 63 |
| Altura · 00150f | Active | €495,000 | €3,056 | 43.3% | 78 | 54 |
| urbanização Orlamar | Active | €650,000 | €5,702 | 5.9% | — | 54 |
| caminho do Lago, 8 | Active | €320,000 | €3,902 | 27.5% | 75 | 60 |
| Median comp | €545,000 | €3,935 | 26.9% | 77 | 57 |
Long-term rental The 3-bed villa in Castro Marim is overpriced at €1,400,000, significantly exceeding its fair value of €790,368, resulting in a 43.5% gap. With a gross yield of 0% and a mediocre neighbourhood rating of 52/100, the potential for steady rental income in the long term appears limited. Short-term vacation rental Given the seasonal nature of the Algarve's tourism-driven economy, investing in this villa as a short-term vacation rental may not be advisable due to its inflated price of €1,400,000 against a fair value of €790,368. The property's condition rating of 78/100 further diminishes its attractiveness in a competitive vacation rental market. Buy-and-hold Purchasing the villa with a focus on a buy-and-hold strategy does not align well with its current listing of €1,400,000 compared to a fair value of €790,368, indicating it is overpriced by 43.5%. Additionally, the mediocre neighbourhood rating and lack of gross yield suggest that holding this property long-term may not yield desirable financial returns.
Economic and Tenant Instability With both economic and tenant stability scores at 50/100, there is a significant risk that fluctuations in the local economy or tenant turnover could lead to decreased occupancy rates and rental income.
