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 apartment of 88 m², built in 1994, energy rating C. Located on rua Terra Estreita, 4, Santa Luzia parish, Tavira municipality, Faro district. This apartment features a spacious enclosed veranda and laundry/storage area, enhancing both functionality and comfort, combined with captivating sea and village views.
The valuation. The asking price of €279,000 is significantly higher than the fair value of €156,017, resulting in an excess of €122,983, or 44.1%. This property is clearly overpriced based on current market trends.
Fair value modelled at €156,017 from the area baseline, adjusted for condition and location. Asking €279,000 sits €122,983 (44.1%) above — overpriced versus fair value.
Asking €279,000 versus the rua Terra Estreita, 4 area baseline of €318,912 (€3,624/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 74 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 70 · Amenities 65 · Economic 65 · Tenant Quality 68). Strong amenities and housing-market momentum support a premium to baseline.
rua Terra Estreita, 4
Area baseline €318,912 + condition +€3,575 + location +€9,706 = modelled fair value of €156,017 (€1,773/m²), a €122,983 (44.1%) gap versus the €279,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Terra Estreita, 4 | Subject | €279,000 | €3,170 | — | 74 | 67 |
| rua Doutor Silvestre Falcão | Active | €295,000 | €3,041 | 4.1% | 75 | 60 |
| rua das Andainas, 4N | Active | €325,000 | €3,250 | 2.5% | 65 | 65 |
| rua do Óculo, 11 | Active | €280,000 | €4,179 | 31.8% | 74 | 58 |
| Tavira (Santa Maria e Santiago) · 6fb956 | Active | €310,000 | €5,254 | 65.7% | 75 | 57 |
| Median comp | €302,500 | €3,715 | 17.2% | 75 | 59 |
Short-term vacation rental This 2-bed apartment in Santa Luzia, Tavira, is priced at €279,000, significantly exceeding its fair value of €156,017 by 44.1%. Given the local tourism appeal, the current yield of 5% is not sufficient to justify the high price point, indicating a potential shortfall in rental returns. Buy-and-hold With a fair value gap of 44.1%, investing in this property as a buy-and-hold strategy may lead to an overextended hold period before any appreciation can make the investment viable. The current gross yield of 5% reflects a lack of adequate returns that could support long-term growth, making it a less attractive option. Family rental Although family rentals typically benefit from steady demand, this property’s asking price of €279,000 does not align with its fair value, signaling that it is overpriced at 44.1% above justified levels. The condition and neighborhood ratings, while decent, do not compensate for the significant valuation gap, hindering potential rental stability and profit margins.
Economic Vulnerability The property faces potential economic instability due to its economic stability score of 65/100, which suggests a susceptibility to market fluctuations that could impact rental income.
