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 146 m², built in 2007, energy rating C. Located Santa Catarina da Fonte do Bispo parish, Tavira municipality, Faro district. Noteworthy Features: This villa includes an approved project for a 32.85 m² extension and boasts breathtaking mountain views from its elevated position on a generous 10,090 m² plot.
The valuation. The asking price of €839,000 sits significantly above the fair value of €418,024, marking an overpricing of €420,976 or 50.2%. This property is not a sound investment based on its current valuation.
Fair value modelled at €418,024 from the area baseline, adjusted for condition and location. Asking €839,000 sits €420,976 (50.2%) above — overpriced versus fair value.
Asking €839,000 versus the Santa Catarina da Fonte do Bispo, Tavira, Faro area baseline of €338,720 (€2,320/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 52/100 (Housing Market 60 · Amenities 50 · Economic 45 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Santa Catarina da Fonte do Bispo, Tavira, Faro
Area baseline €338,720 + condition +€18,022 + location +€3,175 = modelled fair value of €418,024 (€2,863/m²), a €420,976 (50.2%) gap versus the €839,000 asking price.
Short-term vacation rental With an asking price of €839,000, this property is overpriced by 50.2% compared to its fair value of €418,024, making it a less attractive option for short-term vacation rentals in the competitive Algarve market. The gross yield of 2.1% further demonstrates that the financial potential does not justify the current listing price. Long-term rental The excessive price of €839,000, which is 50.2% above the fair value, limits the feasibility of this property as a long-term rental investment in a neighborhood rated 52/100. Given the low yield of 2.1%, potential investors may find better opportunities that offer a stronger return on investment.
Economic and Tenant Risk With an economic stability score of 45/100 and a tenant stability score of 55/100, there is a significant risk that the property may experience fluctuating occupancy rates and rental income instability due to weak economic conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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