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.
2-bedroom, 2-bathroom house of 120 m², energy rating F. Located Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Noteworthy Features: The property includes two centenary carob trees on a vast 7272 m² plot, and a 52 m² warehouse offering ample storage or utility space.
The valuation. The asking price of €650,000 sits significantly above the fair value of €402,213, making it overpriced by €247,787 (38.1%). This discrepancy indicates a substantial financial risk for potential investors. Buy-to-flip angle. A buy-to-flip strategy could aim for value-added renovations to enhance the appeal before resale. However, given the current overpricing, profitability through flipping would likely need substantial market appreciation. Buy-to-let angle. With an estimated rental income of €1,463/month and a gross yield of 2.7%, the buy-to-let strategy appears limited. The low yield suggests that cash flow might not meet investment expectations, especially considering the higher purchase price.
Fair value modelled at €402,213 from the area baseline, adjusted for condition and location. Asking €650,000 sits €247,787 (38.1%) above — overpriced versus fair value.
Asking €650,000 versus the Luz de Tavira e Santo Estévão, Tavira, Faro area baseline of €380,280 (€3,169/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 48/100 (Condition 45 · Materials 50 · Room dimensions 55). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 60/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Luz de Tavira e Santo Estévão, Tavira, Faro
Area baseline €380,280 + condition -€50,063 + location +€17,395 = modelled fair value of €402,213 (€3,352/m²), a €247,787 (38.1%) gap versus the €650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz de Tavira e Santo Estévão · 6eba10 | Subject | €650,000 | €5,417 | — | 45 | 60 |
| Luz de Tavira e Santo Estévão · 001a0b | Active | €440,000 | €3,793 | 30.0% | 58 | 60 |
| Santa Luzia · f35f0b | Active | €295,000 | €4,214 | 22.2% | 75 | 63 |
| Santa Luzia · 4ba910 | Active | €310,000 | €3,523 | 35.0% | 62 | 57 |
| autoestrada EM516 | Active | €375,000 | €3,099 | 42.8% | 80 | 63 |
| Median comp | €342,500 | €3,658 | 32.5% | 69 | 62 |
Short-term vacation rental The property is overpriced at €650,000 given its fair value of €402,213, indicating a gap of 38.1%. With a gross yield of only 2.7% and a condition score of 48/100, the economics of operating this as a short-term rental are unfavorable. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its overpricing and low yield. The neighborhood's combined rating of 60/100 suggests that potential appreciation is limited, making it a less attractive long-term investment. Value-add renovation Despite the potential benefits of a value-add renovation, the current price of €650,000 is excessive compared to its fair value. The property's condition score of 48/100 could necessitate significant investment to reach market standards, further complicating profitability in an overpriced scenario.
Tenant turnover risk High tenant turnover could lead to increased vacancy rates and potential loss of income, as both economic and tenant stability scores are at a low 55/100.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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