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 145 m², built in 1986, energy rating A. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. This property includes a gym and an elegant guest suite with independent access, adding both functionality and privacy for guests or family members.
The valuation. The asking price of €840,000 is significantly above the fair value of €728,527, indicating the property is overpriced by €111,473 (15.3%). \n\nBuy-to-flip angle. A buy-to-flip strategy could capitalize on cosmetic updates, targeting a resale price that reflects improved market value, potentially elevating profitability. \n\nBuy-to-let angle. The property presents a buy-to-let opportunity with an estimated gross yield of 2.3%, generating approximately €1,610 per month from short-term vacation rentals in a sought-after area.
Fair value modelled at €728,527 from 6 comparable sales in the area. Asking €840,000 sits €111,473 (15.3%) above — overpriced versus fair value.
Asking €840,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €672,991 (€4,641/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €672,991, adjusted for condition and micro-location, gives a modelled fair value of €728,527 (€5,024/m²), a €111,473 (15.3%) gap versus the €840,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 8ee30e | Subject | €840,000 | €5,793 | — | 78 | 63 |
| estrada de Loulé, 216A | Active | €1,290,000 | €4,418 | 23.7% | 82 | 67 |
| Santa Bárbara de Nexe · 023cb3 | Active | €1,370,000 | €5,269 | 9.0% | — | 68 |
| Santa Bárbara de Nexe · 6fbc2e | Active | €1,950,000 | €4,779 | 17.5% | 85 | 66 |
| Santa Bárbara de Nexe · 6eba58 | Active | €3,500,000 | €10,294 | 77.7% | 88 | 63 |
| Median comp | €1,660,000 | €5,024 | 13.3% | 85 | 67 |
Short-term vacation rental The property at €840,000 is not well-suited for a short-term vacation rental strategy due to its 2.3% gross yield and the 15.3% gap above fair value. Additionally, the 63/100 neighborhood score indicates potential challenges in attracting high-paying vacationers, making this investment less appealing. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable given its current pricing status above fair value and low gross yield of 2.3%. The 81/100 condition score does suggest reasonable upkeep, yet the 15.3% premium may hinder long-term profitability and appreciation. Family rental While the property could serve as a family rental, the 15.3% overpricing relative to its fair value and the low yield of 2.3% limit its financial attractiveness. Furthermore, the neighborhood score of 63/100 signals potential difficulties in ensuring stable and reliable tenant quality, which is crucial for a successful family rental strategy.
Economic Vulnerability The property faces economic vulnerability due to a low economic stability score of 55 out of 100, suggesting potential market fluctuations that could impact tenant retention and rent prices.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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