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 338 m², built in 2011, energy rating B. Located on rua Alexandre Herculano, São Brás de Alportel parish, São Brás de Alportel municipality, Faro district. This property features a dedicated office space ideal for remote work, complemented by a stunning sea view that enhances both productivity and leisure.
The valuation. The asking price of €890,000 is significantly above the fair value of €616,444, making the property overpriced by €273,556 (30.7%). This discrepancy suggests a lack of market alignment. Buy-to-flip angle. A resale strategy aiming for a profit would rely on identifying undervalued areas. Given current valuations, significant renovations may not yield a favorable return on investment. Buy-to-let angle. The estimated rental income of €2,373/month translates to a gross yield of 3.2%. However, the seasonal employment nature of the neighborhood may affect occupancy rates and rental stability in the long term.
Fair value modelled at €616,444 from the area baseline, adjusted for condition and location. Asking €890,000 sits €273,556 (30.7%) above — overpriced versus fair value.
Asking €890,000 versus the rua Alexandre Herculano area baseline of €804,778 (€2,381/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 75 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
rua Alexandre Herculano
Area baseline €804,778 + condition +€10,563 + location +€25,535 = modelled fair value of €616,444 (€1,824/m²), a €273,556 (30.7%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Alexandre Herculano | Subject | €890,000 | €2,633 | — | 75 | 61 |
| rua Primeiro de Maio, 12 | Active | €450,000 | €2,922 | 11.0% | 74 | 67 |
| São Brás de Alportel · 1e64dd | Active | €750,000 | €3,275 | 24.4% | 75 | 64 |
| São Brás de Alportel · 25f6e1 | Active | €398,000 | €3,522 | 33.8% | 80 | 65 |
| São Brás de Alportel · 4a7e03 | Active | €1,250,000 | €2,260 | 14.2% | 75 | 61 |
| Median comp | €600,000 | €3,099 | 17.7% | 75 | 65 |
Short-term vacation rental The property, while located in the tourist-centric Algarve, is overpriced at €890,000, with a fair value of only €616,444, representing a significant gap of 30.7%. Given the low gross yield of 3.2% and a neighborhood rating of 61/100, the potential for short-term rental profitability is diminished. Long-term rental Despite the appeal of the Algarve region, the property’s current listing price of €890,000 highlights a dangerous overvaluation against the fair value of €616,444, translating to a 30.7% gap. The modest gross yield of 3.2% paired with a neighborhood score of 61/100 suggests that long-term rental returns may not justify this investment. Buy-and-hold With a fair value of €616,444 compared to the asking price of €890,000, there exists a considerable 30.7% overpricing on this property. Given the low yields of 3.2% and the neighborhood's 61/100 rating, the long-term appreciation potential appears limited, making this buy-and-hold strategy unappealing.
Economic and Tenant Instability The property exhibits an economic stability score of 55 and a tenant stability score of 55, indicating a potential risk due to fluctuating income and tenant turnover that could affect cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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