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.
1-bedroom, 2-bathroom house of 70 m², built in 1991, energy rating E. Located Santa Luzia parish, Tavira municipality, Faro district. Investment Ready with Proven Rental History: This villa offers immediate income potential as a fully licensed Local Accommodation, capitalizing on the strong demand in the Eastern Algarve. Authentic Village Charm: The traditional façade in natural stone reflects the local architectural heritage, enhancing its appeal in Santa Luzia.
The valuation. The asking price of €295,000 is significantly above fair value, estimated at €123,163, representing an excess of €171,837 (58.2%). This indicates that the property is overpriced and may not yield a favorable return on investment.
Fair value modelled at €123,163 from the area baseline, adjusted for condition and location. Asking €295,000 sits €171,837 (58.2%) above — overpriced versus fair value.
Asking €295,000 versus the Santa Luzia, Tavira, Faro area baseline of €267,540 (€3,822/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Santa Luzia, Tavira, Faro
Area baseline €267,540 + condition +€3,719 + location +€5,904 = modelled fair value of €123,163 (€1,759/m²), a €171,837 (58.2%) gap versus the €295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Luzia · f35f0b | Subject | €295,000 | €4,214 | — | 75 | 63 |
| rua das Freiras, 51 | Active | €497,000 | €4,438 | 5.3% | 70 | 70 |
| praça Histórica de Tavira | Active | €1,300,000 | €3,858 | 8.5% | — | 68 |
| praça da República | Active | €535,000 | €8,231 | 95.3% | 80 | 73 |
| Tavira (Santa Maria e Santiago) · 96c107 | Active | €750,000 | €2,679 | 36.4% | 65 | 63 |
| Median comp | €642,500 | €4,148 | 1.6% | 70 | 69 |
Short-term vacation rental This property, despite its coastal location in Algarve and potential appeal to tourists, is overpriced at €295,000, significantly above the fair value of €123,163. With a gross yield of only 2.5%, the investment fails to justify the high entry price, limiting its attractiveness for short-term holiday rentals. Long-term rental Investing in this 1-bed house for long-term rental is not advisable due to its 58.2% gap above fair value, which renders the purchase financially unappealing. The current gross yield of 2.5% does not offer sufficient return on investment to offset the high cost of entry. Buy-and-hold Acquiring this property for a buy-and-hold strategy remains a weak proposition given its valuation at €295,000, which is far above the fair price established at €123,163. The 2.5% gross yield does not provide a compelling rationale, indicating that the investment is unlikely to yield satisfactory long-term returns.
Economic downturn risk The property is at risk due to a relatively low economic stability score of 60/100, which could indicate potential financial challenges in the local market affecting rental income. Tenant turnover risk With a tenant stability score of only 55/100, there is an increased likelihood of vacancies and higher turnover costs, impacting overall profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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