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, 0-bathroom villa of 206 m², energy rating A. Located Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Noteworthy Features: The villa's expansive 1-hectare plot provides extensive outdoor living options, complemented by panoramic terraces offering breathtaking views of Ria Formoso and the sea.
The valuation. The asking price of €1,850,000 significantly exceeds the fair value of €808,128, representing an alarming overpricing of €1,041,872 (56.3%). This property is overpriced and may deter potential buyers.
Fair value modelled at €808,128 from the area baseline, adjusted for condition and location. Asking €1,850,000 sits €1,041,872 (56.3%) above — overpriced versus fair value.
Asking €1,850,000 versus the Luz de Tavira e Santo Estévão, Tavira, Faro area baseline of €652,814 (€3,169/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 85 · Materials 88 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Luz de Tavira e Santo Estévão, Tavira, Faro
Area baseline €652,814 + condition +€25,750 + location +€35,834 = modelled fair value of €808,128 (€3,923/m²), a €1,041,872 (56.3%) gap versus the €1,850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz de Tavira e Santo Estévão · 483dee | Subject | €1,850,000 | €8,981 | — | 85 | 62 |
| praça da República | Active | €799,000 | €4,296 | 52.2% | 75 | 70 |
| Luz de Tavira e Santo Estévão · 957061 | Active | €2,750,000 | €11,603 | 29.2% | 85 | 62 |
| Luz de Tavira e Santo Estévão · 389d15 | Active | €1,499,000 | €3,578 | 60.2% | 74 | 58 |
| Luz de Tavira e Santo Estévão · 261f45 | Active | €1,399,000 | €3,347 | 62.7% | 80 | 52 |
| Median comp | €1,449,000 | €3,937 | 56.2% | 78 | 60 |
Long-term rental The property is overpriced at €1,850,000, as the fair value is only €808,128, suggesting an unsustainable long-term rental yield of just 1.2%. Given the property’s condition score of 86/100 and the neighborhood quality of 62/100, long-term rental demand may be inadequate to justify this investment. Short-term vacation rental With a listing price of €1,850,000 and a fair value of €808,128, the villa's high cost inhibits its potential for a competitive short-term vacation rental yield. While tourist interest in the Algarve is strong, the significant price gap indicates a flawed investment strategy in the current market. Buy-and-hold This property, currently listed at €1,850,000, shows a staggering 56.3% gap from its fair value of €808,128, signaling that a buy-and-hold strategy would likely lead to stagnation rather than growth. The combination of a low gross yield of 1.2% and neighborhood characteristics suggests that holding onto this asset would not yield favorable returns in the long run.
Economic Vulnerability The property could face financial instability due to its economic stability score of 60/100, which suggests moderate risk in economic conditions. Tenant Turnover Risk With a tenant stability score of 60/100, there is potential for higher turnover rates, leading to increased vacancy periods and associated costs.
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