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.
4-bedroom, 3-bathroom house of 293 m², energy rating E. Located on caminho do Telheiro S / N, Santa Bárbara de Nexe parish, Faro municipality, Faro district. This property includes an interior leisure space with a rustic style and a wood-burning oven, ideal for family gatherings and enhancing the home’s character.
The valuation. The asking price of €880,000 is significantly higher than the fair value of €497,471, indicating an overestimation by €382,529 or 43.5%. This property is priced above what market fundamentals would dictate.
Fair value modelled at €497,471 from the area baseline, adjusted for condition and location. Asking €880,000 sits €382,529 (43.5%) above — overpriced versus fair value.
Asking €880,000 versus the caminho do Telheiro S / N area baseline of €503,081 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 (Condition 63 · Materials 72 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 55 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
caminho do Telheiro S / N
Area baseline €503,081 + condition -€29,758 + location +€24,148 = modelled fair value of €497,471 (€1,698/m²), a €382,529 (43.5%) gap versus the €880,000 asking price.
Short-term vacation rental Despite the high demand for tourist accommodations in the Algarve, the current listing price of €880,000 is 43.5% above the fair value of €497,471, indicating that the property is overpriced for this purpose. A gross yield of 4.5% further suggests that potential returns may not justify the investment at this elevated price point. Buy-and-hold The significant gap between the listing price and the fair value suggests that holding onto this property as a long-term investment may not be financially sound, given its overpriced status at €880,000. With a condition rating of 69/100 and a neighborhood score of 62/100, the property's potential for appreciation in value is questionable. Family rental While the property has the space for a family rental, the listing price of €880,000 exceeds its fair market value by 43.5%, making it overly expensive for this strategy. The mediocre condition and neighborhood ratings further imply that a family would likely seek more affordable options in the area.
Inconsistent Income Risk The economic stability score of 60/100 paired with a tenant stability score of 65/100 indicates a moderate risk of inconsistent rental income due to potential fluctuations in the market and tenant turnover rates.
