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 house of 100 m², built in 1951, energy rating D. Located on rua da Praia, Budens parish, Vila do Bispo municipality, Faro district. Notable Feature: The property retains two independent electricity meters, allowing potential for converting back into separate rental units, maximizing investment income opportunities.
The valuation. The asking price of €475,000 exceeds the fair value by €303,627, marking it as overpriced at a significant 63.9%. This discrepancy suggests a cautionary approach for potential investors. Buy-to-flip angle. A resale strategy may involve renovations to enhance appeal, targeting potential buyers who are attracted to the Algarve region, where seasonal demand could help recoup investment costs. Buy-to-let angle. With an estimated gross yield of 4.4%, converting this property into a long-term rental could generate approximately €1,742 monthly, leveraging the strong seasonal market due to tourism.
Fair value modelled at €171,374 from the area baseline, adjusted for condition and location. Asking €475,000 sits €303,627 (63.9%) above — overpriced versus fair value.
Asking €475,000 versus the rua da Praia area baseline of €171,700 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 (Condition 60 · Materials 70 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Praia
Area baseline €171,700 + condition -€14,063 + location +€13,736 = modelled fair value of €171,374 (€1,714/m²), a €303,627 (63.9%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Praia | Subject | €475,000 | €4,750 | — | 60 | 70 |
| Budens · 1e62cc | Active | €475,000 | €4,750 | 0% | 66 | 74 |
| Budens · 090287 | Active | €1,250,000 | €10,246 | 115.7% | — | 75 |
| Luz · 956aad | Active | €495,000 | €4,125 | 13.2% | 70 | 73 |
| Budens · ba3cb9 | Active | €1,250,000 | €12,887 | 171.3% | — | 68 |
| Median comp | €872,500 | €7,498 | 57.9% | 68 | 74 |
Short-term vacation rental Investing in this property as a short-term vacation rental is not advisable due to its significant price gap of 63.9% from fair value, indicating it is overpriced at €475,000. The 4.4% gross yield and average condition score of 66/100 do not justify the elevated entry cost, especially in a seasonally driven market. Buy-and-hold This buy-and-hold strategy is clearly not optimal for the Budens property, as its current valuation reflects a 63.9% disparity from fair value, categorizing it as overpriced at €475,000. Given the average condition score and relatively weak overall yield of 4.4%, potential long-term appreciation does not compensate for the inflated purchase price. Long-term rental Acquiring this property for long-term rental purposes is unwise due to its significant overvaluation of €475,000 versus the fair value of €171,374, leading to a 63.9% gap. Although the local rental market benefits from the tourism-driven demand, the gross yield of 4.4% does not provide a compelling case against its overpriced status.
Economic vulnerability With an economic stability score of 65/100, there is a moderate risk that economic fluctuations could negatively impact rental income and property value.
