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 villa of 238 m², built in 2007, energy rating B. Located on rua Baiona La Real, 35, Sagres parish, Vila do Bispo municipality, Faro district. Noteworthy Features: This villa features an expansive open-plan living area and elevated terraces with panoramic views, enhancing indoor-outdoor living and showcasing the stunning Algarve landscape.
The valuation. The asking price of €2,200,000 is significantly above the fair value of €480,895, representing a premium of €1,719,105 (78.1%). This property is therefore overpriced, making it a less appealing investment opportunity.
Fair value modelled at €480,895 from the area baseline, adjusted for condition and location. Asking €2,200,000 sits €1,719,105 (78.1%) above — overpriced versus fair value.
Asking €2,200,000 versus the rua Baiona La Real, 35 area baseline of €844,186 (€3,547/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 85 · Materials 90 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 75 · Economic 75 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Baiona La Real, 35
Area baseline €844,186 + condition +€29,750 + location +€42,499 = modelled fair value of €480,895 (€2,021/m²), a €1,719,105 (78.1%) gap versus the €2,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Baiona La Real, 35 | Subject | €2,200,000 | €9,244 | — | 85 | 76 |
| Budens · 96c488 | Active | €579,000 | €3,217 | 65.2% | 75 | 75 |
| Budens · 001b65 | Active | €465,000 | €3,875 | 58.1% | 80 | 73 |
| rua Almaverde, 179 | Active | €1,150,000 | €3,026 | 67.3% | 80 | 74 |
| rua Almaverde, 179 | Active | €1,150,000 | €3,026 | 67.3% | 80 | 78 |
| Median comp | €864,500 | €3,122 | 66.2% | 80 | 75 |
Short-term vacation rental While the location near Algarve beaches may attract tourists, the asking price of €2,200,000 significantly exceeds the fair value of €480,895, making this a poor investment as the yield remains at 0%. The substantial 78.1% gap from fair value indicates that entering the vacation rental market with this property would be financially unwise. Long-term rental At a listing price of €2,200,000, the villa's fair value of €480,895 suggests that it is overpriced by 78.1%, which renders it an unsuitable option for long-term rental investment. The lack of rental yield and high purchase price make it challenging to achieve a return on investment in this strategy. Buy-and-hold Investing in this property as a buy-and-hold strategy appears risky, given the €2,200,000 price tag versus a fair value of €480,895, indicating significant overpricing by 78.1%. The stagnant yield of 0% further complicates the potential for capital appreciation, making it an unappealing long-term holding. Not ideal for This property is not suitable for student housing, industrial investment, or the luxury market due to its overvalued status and lack of rental yield, which would hinder profitability across these sectors.
Economic Dependence Risk: With both economic and tenant stability scores at 75/100, there's a risk that any future downturn could adversely affect cash flow and occupancy rates simultaneously, potentially leading to a decline in property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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