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, 2-bathroom villa of 142 m², built in 1888, energy rating E. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. This villa features a beautifully integrated outdoor kitchen and a 'private beach' area, enhancing its appeal for leisure and entertaining in a tranquil garden setting.
The valuation. The asking price of €580,000 is significantly higher than the fair value of €248,232, presenting an overpricing of €331,768 (57.2%). This discrepancy indicates that the property is overpriced for potential investors. Buy-to-flip angle. Given the current overvaluation, a buy-to-flip strategy may not yield profitable returns unless significant renovations are made to justify pricing above market value. A complete overhaul could appeal to buyers seeking modern features. Buy-to-let angle. With an estimated gross yield of 2.4% from a projected rental income of €1,160/month, this villa is positioned for long-term rental potential. However, the low yield suggests limited short-term financial benefits in comparison to investment risks.
Fair value modelled at €248,232 from the area baseline, adjusted for condition and location. Asking €580,000 sits €331,768 (57.2%) above — overpriced versus fair value.
Asking €580,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €539,742 (€3,801/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 62 · Materials 74 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Santa Bárbara de Nexe, Faro, Faro
Area baseline €539,742 + condition -€15,087 + location +€19,505 = modelled fair value of €248,232 (€1,748/m²), a €331,768 (57.2%) gap versus the €580,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 938863 | Subject | €580,000 | €4,085 | — | 62 | 70 |
| Santa Bárbara de Nexe · 956997 | Active | €850,000 | €2,243 | 45.1% | 70 | 70 |
| Santa Bárbara de Nexe · 4b99cc | Active | €995,000 | €5,293 | 29.6% | 75 | 69 |
| rua de Loule | Active | €890,000 | €3,956 | 3.2% | — | 62 |
| estrada Joaquim Rosa Pinto | Active | €1,980,000 | €5,077 | 24.3% | 79 | 60 |
| Median comp | €942,500 | €4,517 | 10.6% | 75 | 66 |
Short-term vacation rental The potential yield of 2.4% on the villa in Santa Bárbara de Nexe is considerably lower than the market standards for vacation rentals, indicating that the property is overpriced at €580,000 given its fair value of €248,232. With a condition rating of 68/100 and a neighborhood score of 70/100, the property lacks the competitive edge needed to attract premium short-term clientele. Long-term rental Although the villa is located near Albufeira's thriving tourism economy, its current valuation at €580,000 is misaligned with the fair value estimate of €248,232, marking it as overpriced. The gross yield of 2.4% further suggests that this investment would produce limited returns over an extended period, hampering cash flow potential in the long-term rental market. Buy-and-hold Despite the possibility of appreciating property value in Santa Bárbara de Nexe, the purchase price of €580,000 significantly exceeds the fair valuation of €248,232, classifying it as overpriced. This discrepancy, combined with a low gross yield of 2.4%, implies that holding this asset would not yield satisfactory gains over time, making it an unfavorable buy-and-hold strategy.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to market downturns which could impact rental income stability and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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