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, 4-bathroom house of 258 m², built in 2007, energy rating C. Located on rua da Praia, Budens parish, Vila do Bispo municipality, Faro district. Exceptional Features: This property includes a fully equipped professional kitchen within a reputable restaurant, providing immediate profitability alongside the elegant living space with breathtaking sea views and a private terrace.
The valuation. The asking price of €999,000 is significantly above the fair value of €517,913, making it overpriced by €481,087 (48.2%). This disparity indicates a lack of alignment with market trends and property fundamentals.
Fair value modelled at €517,913 from the area baseline, adjusted for condition and location. Asking €999,000 sits €481,087 (48.2%) above — overpriced versus fair value.
Asking €999,000 versus the rua da Praia area baseline of €820,440 (€3,180/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 80/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 85). Strong amenities and housing-market momentum support a premium to baseline.
rua da Praia
Area baseline €820,440 + condition +€21,769 + location +€53,158 = modelled fair value of €517,913 (€2,007/m²), a €481,087 (48.2%) gap versus the €999,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Praia | Subject | €999,000 | €3,872 | — | 78 | 80 |
| Luz · 956aad | Active | €495,000 | €4,125 | 6.5% | 70 | 73 |
| urbanização Quinta da Fortaleza | Active | €745,000 | €3,706 | 4.3% | 78 | 71 |
| Luz · 956bf1 | Active | €980,000 | €2,248 | 42.0% | 74 | 75 |
| travessa da Saudade N, 10 | Active | €499,000 | €3,465 | 10.5% | 75 | 69 |
| Median comp | €622,000 | €3,586 | 7.4% | 75 | 72 |
Long-term rental Given the listing price of €999,000, the gross yield of 2.9% is insufficient to justify the investment, as the fair value stands at only €517,913, representing a significant disconnect of 48.2%. The local tenant quality and neighborhood rating are decent, but they do not outweigh the fact that the property is overpriced. Short-term vacation rental While Budens in Vila do Bispo benefits from proximity to key tourist attractions, the property's 2.9% yield does not align with its listing price of €999,000, particularly when fair value is estimated at €517,913. This gap suggests that the short-term rental market may not adequately compensate for the price, rendering the investment overpriced. Buy-and-hold Investing in this property as a buy-and-hold strategy is challenging due to its listing price of €999,000 being significantly above the fair value of €517,913, leading to a 48.2% gap. Though the neighborhood has positive ratings, the overall pricing indicates that the property is overpriced for long-term appreciation potential.
Potential Economic Fluctuations The economic stability score of 65/100 indicates a moderate risk of fluctuations in local economic conditions that may impact rental income and property value.
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