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 house of 279 m², energy rating A. Located Castro Marim parish, Castro Marim municipality, Faro district. Noteworthy Features: This property boasts stunning panoramic sea views and is situated in a quiet location, just minutes away from the Algarve's beautiful beaches and charming historic center.
The valuation. The asking price of €995,000 is significantly higher than the fair value of €847,089, resulting in an overpriced verdict of €147,911 (14.9%). This valuation indicates a lack of appeal for value-focused investors.
Fair value modelled at €847,089 from the area baseline, adjusted for condition and location. Asking €995,000 sits €147,911 (14.9%) above — overpriced versus fair value.
Asking €995,000 versus the Castro Marim, Castro Marim, Faro area baseline of €830,583 (€2,977/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 74 · Materials 78 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 53/100 (Housing Market 60 · Amenities 50 · Economic 45 · Tenant Quality 50). Strong amenities and housing-market momentum support a premium to baseline.
Castro Marim, Castro Marim, Faro
Area baseline €830,583 + condition +€6,539 + location +€9,967 = modelled fair value of €847,089 (€3,036/m²), a €147,911 (14.9%) gap versus the €995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Castro Marim · 8935f2 | Subject | €995,000 | €3,566 | — | 74 | 53 |
| urbanização Praia Verde | Active | €595,000 | €3,967 | 11.2% | — | 63 |
| Altura · 00150f | Active | €495,000 | €3,056 | 14.3% | 78 | 54 |
| Castro Marim · 65a439 | Active | €1,400,000 | €5,385 | 51.0% | 75 | 52 |
| Castro Marim · 6d5512 | Active | €450,000 | €3,169 | 11.1% | 45 | 55 |
| Median comp | €545,000 | €3,568 | 0% | 75 | 55 |
Short-term vacation rental The property is not well-suited for short-term vacation rentals due to its gross yield of only 1.3%, which suggests limited potential for generating attractive returns. Additionally, the neighborhood score of 53/100 indicates that amenities and tenant quality may not meet the expectations of vacationers seeking a premium experience. Long-term rental Investing in this property for long-term rental purposes is also not advisable, as the fair value is significantly lower at €847,089, revealing a 14.9% gap and signaling an overpriced asset. The condition score of 77/100, while decent, does not compensate for the elevated purchase price in a neighborhood rated 53/100, which may deter quality long-term tenants. Not ideal for student housing This property is not suitable for student housing due to the neighborhood's low score of 53/100, which likely reflects a lack of affordable amenities and a vibrant social scene that students typically seek. Additionally, the high price point and low yield further diminish its attractiveness for this demographic. Not ideal for luxury market With a fair value significantly below the listing price, this property does not fit within the luxury market segment, which generally demands exclusivity and exceptional amenities. The combination of a modest condition score and average neighborhood factors suggests that it would struggle to attract affluent buyers.
Potential Tenant Turnover The combined economic stability score of 45 and tenant stability score of 50 indicates a risk of high tenant turnover, which could lead to increased vacancy rates and lost rental income.
