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, 1-bathroom house of 149 m², energy rating F. Located on rua Amaro Gonçalves, 2, Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Prominent features: The property includes a small yard with a lemon tree and an annex in ruin that offers potential for redevelopment or additional living space once restored.
The valuation. The asking price of €179,000 is significantly below the fair value of €416,727, representing a discount of €237,727 (132.8%). This property is underpriced, presenting a compelling investment opportunity.
Fair value modelled at €416,727 from the area baseline, adjusted for condition and location. Asking €179,000 sits €237,727 (132.8%) below — the upside to fair value.
Asking €179,000 versus the rua Amaro Gonçalves, 2 area baseline of €472,181 (€3,169/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 10/100 (Condition 5 · Materials 10 · Room dimensions 15). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 75 · Amenities 60 · Economic 65 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
rua Amaro Gonçalves, 2
Area baseline €472,181 + condition -€151,328 + location +€28,079 = modelled fair value of €416,727 (€2,797/m²), a €237,727 (132.8%) gap versus the €179,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Amaro Gonçalves, 2 | Subject | €179,000 | €1,201 | — | — | 63 |
| Luz de Tavira e Santo Estévão · 00185b | Active | €675,000 | €3,649 | 203.7% | 15 | 53 |
| Luz de Tavira e Santo Estévão · 6eba10 | Active | €650,000 | €5,417 | 350.9% | 45 | 60 |
| Luz de Tavira e Santo Estévão · 001a0b | Active | €440,000 | €3,793 | 215.7% | 58 | 60 |
| autoestrada EM516 | Active | €375,000 | €3,099 | 158.0% | 80 | 63 |
| Median comp | €545,000 | €3,721 | 209.7% | 52 | 60 |
Long-term rental The property presents a compelling long-term rental opportunity with a gross yield of 12.2%, indicating a strong cash flow potential. With the fair value significantly higher at €416,727, the asking price of €179,000 positions it as an attractive addition to any rental portfolio. Short-term vacation rental Given the popularity of Southern Portugal as a tourist destination, this property is well-situated for short-term vacation rentals, offering high profitability compared to its listing price. The current valuation gap emphasizes its potential as a lucrative investment in a market driven by tourism. Buy-and-hold Investing in this property for a buy-and-hold strategy is sensible, considering its substantial fair value compared to the listing price. This suggests that not only will the property likely appreciate over time, but it also stands to generate a consistent income stream with favorable tenant demand. Not ideal for student housing The property’s location and features do not align well with the student housing market, limiting potential rental income from this demographic. Given the existing lifestyle and tourist focus in the area, it is best suited to longer-term tenants or vacationers. Not ideal for luxury market This property does not cater to the luxury market, as its condition rating of 10/100 and lower neighborhood scoring indicate it lacks high-end appeal. It is better suited for practical and cost-conscious investors rather than those pursuing luxury assets.
Tenant turnover risk With a tenant stability score of 55/100, there is a significant risk of higher turnover, potentially increasing vacancy rates and impacting cash flow negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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