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 128 m², built in 1990, energy rating E. Located on rua do Oriente, Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: The property boasts a serene outdoor space complete with a barbecue area and a private pool, perfect for year-round leisure in the Algarve sunshine.
The valuation. The asking price of €645,000 is significantly above the fair value of €245,204, representing an overvaluation of €399,796 (62.0%). This discrepancy suggests the property is overpriced and may not be a prudent investment. Buy-to-flip angle. A buy-to-flip strategy may not yield desirable results given the high acquisition cost, requiring substantial appreciation before resale to realize a profit. The current pricing presents a challenging environment for equity gains through flipping. Buy-to-let angle. With an estimated gross yield of 2.2% and monthly rental income of approximately €1,183, the property can serve as a buy-and-hold investment. However, the yield is relatively low for the market, making long-term profitability uncertain.
Fair value modelled at €245,204 from the area baseline, adjusted for condition and location. Asking €645,000 sits €399,796 (62.0%) above — overpriced versus fair value.
Asking €645,000 versus the rua do Oriente area baseline of €219,776 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua do Oriente
Area baseline €219,776 + condition +€14,000 + location +€11,428 = modelled fair value of €245,204 (€1,916/m²), a €399,796 (62.0%) gap versus the €645,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Oriente | Subject | €645,000 | €5,039 | — | 80 | 63 |
| Vila Nova de Cacela · 0dcf5b | Active | €466,000 | €3,641 | 27.8% | 72 | 64 |
| Vila Nova de Cacela · 001578 | Active | €360,000 | €3,711 | 26.3% | 68 | 63 |
| Altura · 00150f | Active | €495,000 | €3,056 | 39.4% | 78 | 54 |
| Vila Nova de Cacela · 0dcf71 | Active | €450,000 | €5,233 | 3.8% | — | 55 |
| Median comp | €458,000 | €3,676 | 27.0% | 72 | 59 |
Short-term vacation rental Given its pricing at €645,000 and a fair value of €245,204, this property is not well-suited for short-term vacation rentals, as it shows a significant markup of 62.0%. The gross yield of 2.2% is less attractive, especially in consideration of the moderate urbanization of Vila Nova de Cacela. Buy-and-hold As an investment for a buy-and-hold strategy, the property is overpriced, with a fair value gap of 62.0% that raises concerns about future appreciation potential. The combination of the low gross yield of 2.2% and condition rating of 82/100 indicates that the long-term rental income may not sufficiently justify the high entry cost. Family rental The pricing of €645,000 is excessively high compared to its fair value, making it a poor choice for a family rental investment with potential profitability challenges. With a neighbourhood rating of only 63/100, the property might struggle to attract quality tenants willing to pay premium rents in the current market conditions.
Economic and Tenant Instability Risk: With both economic and tenant stability scores at 60/100, the property faces a significant risk of market volatility and higher vacancy rates.
