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, 2-bathroom apartment of 173 m², built in 2007. Located on rua Pedro Leonardo Mergoux, Tavira (Santa Maria e Santiago) parish, Tavira municipality, Faro district. This apartment features high-quality finishes, a barbecue balcony for outdoor dining, and a heat recovery system fireplace that enhances energy efficiency and comfort.
The valuation. The asking price of €350,000 sits significantly below fair value, which is €643,680, indicating the property is underpriced by €293,680 (83.9%). This presents an excellent opportunity for discerning investors.
Fair value modelled at €643,680 from the area baseline, adjusted for condition and location. Asking €350,000 sits €293,680 (83.9%) below — the upside to fair value.
Asking €350,000 versus the rua Pedro Leonardo Mergoux area baseline of €626,952 (€3,624/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 72 · Room dimensions 64). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 64/100 (Housing Market 60 · Amenities 65 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Pedro Leonardo Mergoux
Area baseline €626,952 + condition -€18,381 + location +€35,109 = modelled fair value of €643,680 (€3,721/m²), a €293,680 (83.9%) gap versus the €350,000 asking price.
Long-term rental The current listing price of €350,000 for the 3-bed apartment in Tavira presents a significant opportunity, being 83.9% below its fair value of €643,680, which translates to a strong yield of 5.9% gross. Given the area's reliance on tourism for economic stability, the property is likely to attract quality tenants seeking long-term housing solutions. Short-term vacation rental With a fair value significantly higher than its current listing, this apartment could serve as a lucrative short-term vacation rental, capitalizing on the Algarve's robust tourism sector. The combination of affordable pricing and a favorable yield of 5.9% provides a strong incentive for potential investors in the short-term market. Buy-and-hold The substantial gap between the listing price and fair value suggests that holding onto this property in Tavira could yield considerable returns as market conditions improve over time. Additionally, the ongoing tourism influence in the region positions this investment as an attractive option for those looking to secure long-term growth in real estate value.
Economic and Tenant Stability Risk: With both economic stability and tenant stability scores at 65/100, there is a heightened risk of tenant turnover and localized economic downturns negatively impacting rental income stability.
