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.
2-bedroom, 2-bathroom house of 165 m², energy rating D. Located Budens parish, Vila do Bispo municipality, Faro district. Property Highlights: This villa retains its traditional Algarve charm while offering a multi-functional annex, creating opportunities for rental income or guest accommodation. Outdoor Oasis: The spacious terrace boasts unobstructed views, perfect for sunsets.
The valuation. The asking price of €495,000 is significantly above the fair value of €308,751, indicating an overvaluation of €186,249 or 37.6%. Prospective buyers should exercise caution due to this pricing disparity.
Fair value modelled at €308,751 from the area baseline, adjusted for condition and location. Asking €495,000 sits €186,249 (37.6%) above — overpriced versus fair value.
Asking €495,000 versus the Budens, Vila do Bispo, Faro area baseline of €524,700 (€3,180/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 74). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Budens, Vila do Bispo, Faro
Area baseline €524,700 + condition +€516 + location +€24,931 = modelled fair value of €308,751 (€1,871/m²), a €186,249 (37.6%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Budens · da4624 | Subject | €495,000 | €3,000 | — | 72 | 72 |
| Budens · 090287 | Active | €1,250,000 | €10,246 | 241.5% | — | 75 |
| Budens · f36646 | Active | €535,000 | €4,315 | 43.8% | 80 | 72 |
| Budens · 4b92a5 | Active | €625,000 | €4,630 | 54.3% | 79 | 73 |
| Budens · 023bc8 | Active | €525,000 | €4,234 | 41.1% | 76 | 76 |
| Median comp | €580,000 | €4,473 | 49.1% | 79 | 74 |
Short-term vacation rental The property is overpriced at €495,000 compared to its fair value of €308,751, leading to a significant shortfall for prospective returns in the competitive vacation rental market of the Algarve. With a gross yield of only 4.5%, the investment does not align with the potential earnings one would expect in a high-demand tourism area. Long-term rental Considering the property’s price point, potential long-term rental yields remain constraint by the listing price that far exceeds its fair value assessment. The 4.5% yield does not justify the investment, particularly in a neighbourhood where tenant quality may not meet the expectations for such a high-cost property. Buy-and-hold As a buy-and-hold investment, this property presents a challenge due to its overpriced status, with a valuation gap of 37.6% compared to fair market value. While the tourism sector drives local demand, the high initial investment does not support a secure long-term appreciation given the current pricing dynamics.
Economic downturn risk The economic stability score of 65/100 suggests a potential vulnerability to downturns that could negatively impact property performance and values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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