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.
4-bedroom, 3-bathroom house of 133 m², energy rating E. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: This property includes a functional barbecue area and pool, enhancing its appeal for outdoor entertaining and relaxation while enjoying tranquil sea views.
The valuation. The asking price of €425,000 is significantly below the fair value of €590,067, representing an undervaluation of €165,067 (28.0%). This makes the property an attractive investment opportunity for discerning buyers.
Fair value modelled at €590,067 from 6 comparable sales in the area. Asking €425,000 sits €165,067 (28.0%) below — the upside to fair value.
Asking €425,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €548,049 (€4,121/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 is below the parish average, reducing 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 €548,049, adjusted for condition and micro-location, gives a modelled fair value of €590,067 (€4,437/m²), a €165,067 (28.0%) gap versus the €425,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · b32806 | Subject | €425,000 | €3,195 | — | 70 | 61 |
| urbanização Orlamar | Active | €650,000 | €5,702 | 78.4% | — | 54 |
| Vila Nova de Cacela · 4d4208 | Active | €466,000 | €3,641 | 13.9% | 72 | 53 |
| Vila Nova de Cacela · b7c2d5 | Active | €530,000 | €3,118 | 2.4% | 76 | 51 |
| Vila Nova de Cacela · 4d434c | Active | €450,000 | €5,233 | 63.7% | 68 | 60 |
| Median comp | €498,000 | €4,437 | 38.9% | 72 | 54 |
Long-term rental The property in Vila Nova de Cacela presents a solid opportunity for long-term rental, given the fair value suggests a significant upside potential of 28.0%. With a gross yield of 4.2%, this investment could generate stable cash flow in a steadily growing residential market. Short-term vacation rental The tourist influence in the area makes this property an attractive option for short-term vacation rentals, capitalizing on the undervaluation of 28.0% against its fair value. The robust appeal of the region should ensure a steady stream of rental income throughout the peak tourism season. Value-add renovation Given the current condition rating of 71/100, there is room for improvement that can significantly enhance the property's value and rental potential. By executing strategic renovations, investors could further capitalize on the property's fair value of €590,067, bridging the existing 28.0% gap and potentially increasing returns. Not ideal for luxury market This property does not align with the luxury market expectations, as its location and neighborhood ratings suggest it serves a more moderate demographic. The focus should remain on its inherent value rather than targeting high-end clientele. Not ideal for student housing While there is an assumed typical education access in the small town, the property is not suited for the student housing segment, as it does not meet the specific demand required in this competitive market. Instead, the investment strategies should focus on better-suited demographics like families or vacationers.
Potential tenant turnover risk The tenant stability score of 65/100 suggests a moderate likelihood of tenant turnover, which could lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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