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.
4-bedroom, 3-bathroom house of 221 m², built in 1989, energy rating A. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: The property boasts a generous plot of approximately 1,880 m², integrating a low-density garden designed to preserve the natural landscape while enhancing the outdoor living experience.
The valuation. The asking price of €1,800,000 sits €1,376,222 (76.5%) above fair value, indicating the property is significantly overpriced. This discrepancy raises concerns about potential returns on investment. Buy-to-flip angle. A buy-to-flip strategy may be unfeasible, as the high asking price does not allow sufficient margin for a profitable resale after renovation. Investors should consider the substantial difference between asking price and fair value before committing. Buy-to-let angle. The estimated rental income of €1,800/month equates to a gross yield of only 1.2%, suggesting low cash flow potential for a buy-to-let strategy. Given the property's premium pricing, long-term profitability may be difficult to achieve.
Fair value modelled at €423,778 from the area baseline, adjusted for condition and location. Asking €1,800,000 sits €1,376,222 (76.5%) above — overpriced versus fair value.
Asking €1,800,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €379,457 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 82 · Materials 88 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 61/100 (Housing Market 60 · Amenities 55 · Economic 60 · 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 €379,457 + condition +€27,625 + location +€16,696 = modelled fair value of €423,778 (€1,918/m²), a €1,376,222 (76.5%) gap versus the €1,800,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 65a508 | Subject | €1,800,000 | €8,145 | — | 82 | 61 |
| Vila Nova de Cacela · 6f404d | Active | €895,000 | €5,927 | 27.2% | 75 | 51 |
| Vila Nova de Cacela · ba57b8 | Active | €435,000 | €3,425 | 57.9% | 75 | 56 |
| via do Infante de Sagres, 5 | Active | €920,000 | €3,740 | 54.1% | — | 62 |
| Vila Nova de Cacela · ba3d1b | Active | €650,000 | €6,250 | 23.3% | 77 | 64 |
| Median comp | €772,500 | €4,834 | 40.7% | 75 | 59 |
Long-term rental The property is overpriced at €1,800,000, indicating a significant gap of 76.5% from its fair value of €423,778. With a gross yield of only 1.2%, this investment lacks the financial appeal necessary for long-term rental viability. Short-term vacation rental While the Algarve region attracts tourists, the excessive price point of €1,800,000 does not align with the potential revenue from short-term rentals, given its fair value of €423,778. The gross yield of 1.2% further suggests that this property is unlikely to generate favorable returns in the vacation rental market. Buy-and-hold At a listing price of €1,800,000, the property is fundamentally overpriced compared to its fair value of €423,778, leading to an unsustainable investment long-term. The low yield of 1.2% indicates that holding onto this property would not yield adequate returns over time, undermining the buy-and-hold strategy.
Economic Volatility Risk The economic stability score of 60/100 suggests a moderate risk of economic fluctuations affecting property value and tenant retention.
