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, 2-bathroom penthouse of 187 m² on the 2nd floor, built in 2022, energy rating A+. Located Tavira (Santa Maria e Santiago) parish, Tavira municipality, Faro district. Noteworthy Features: The bioclimatic pergola on the private terrace allows for customized solar exposure, enhancing outdoor living year-round while providing unobstructed views of Tavira. Características Notáveis: A pérgola bioclimática no terraço privado permite uma exposição solar personalizada, melhorando a vida ao ar livre durante todo o ano, enquanto oferece vistas desobstruídas de Tavira.
The valuation. The asking price of €740,000 sits €39,032 (5.6%) above the fair value of €700,968, indicating a fair valuation. This price aligns with the quality of the property and its desirable location. Buy-to-flip angle. The buy-to-flip strategy focuses on enhancing this penthouse's appeal and renovating key elements to resell at a premium. Targeting vacationers interested in modern, high-quality features could yield significant profits. Buy-to-let angle. With an estimated monthly rental income of €1,665, the gross yield stands at 2.7%. This strategy capitalizes on the Algarve's tourist demand, enabling steady cash flow through either short-term or long-term rentals.
Fair value modelled at €700,968 from 6 comparable sales in the area. Asking €740,000 sits €39,032 (5.6%) above — overpriced versus fair value.
Asking €740,000 versus the Tavira (Santa Maria e Santiago), Tavira, Faro area baseline of €542,948 (€2,903/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €542,948, adjusted for condition and micro-location, gives a modelled fair value of €700,968 (€3,748/m²), a €39,032 (5.6%) gap versus the €740,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Tavira (Santa Maria e Santiago) · b32a4a | Subject | €740,000 | €3,957 | — | 88 | 58 |
| Tavira (Santa Maria e Santiago) · 38b19e | Active | €360,000 | €4,000 | 1.1% | 73 | 63 |
| rua Timor Lorosae, 3 | Active | €465,000 | €3,550 | 10.3% | 75 | 63 |
| praça da República | Active | €525,000 | €4,565 | 15.4% | 82 | 66 |
| Tavira (Santa Maria e Santiago) · be948c | Active | €615,000 | €2,686 | 32.1% | 85 | 60 |
| Median comp | €495,000 | €3,775 | 4.6% | 79 | 63 |
Short-term vacation rental The property in Tavira, priced at €740,000, is appropriate for short-term vacation rental despite its fair valuation, as it capitalizes on the region's tourist inflow and demand for quality accommodations. The 2.7% gross yield suggests a stable income stream in a location where tourism significantly impacts housing demand, although potential investors should be aware of the competitive landscape. Long-term rental As a long-term rental, this penthouse can attract tenants drawn to the allure of Tavira, though the 5.6% gap from fair value indicates that the property is priced in line with market expectations. With a condition rating of 86/100, the property offers a desirable living space, yet the moderate yield may limit its appeal for those seeking aggressive cash flow. Buy-and-hold Investing in this penthouse as a buy-and-hold strategy aligns with the fair valuation, indicating that the price reflects current market dynamics, but may not provide significant appreciation upside. While the property boasts a good condition rating, the neighborhood score of 58/100 suggests socio-economic factors that might affect long-term value growth, making it a cautious investment choice. Not ideal for: Student housing, Luxury market, Value-add renovation The property is not suitable for student housing due to the competitive rental market in the area, nor does it fit the luxury market segment as the premium pricing reflects its fair value. Additionally, the current condition of 86/100 indicates limited opportunities for value-add renovations, potentially restricting ROI for developers seeking to enhance property value.
Economic Vulnerability The property is at risk due to a low economic stability score of 45/100, indicating potential market volatility that could affect tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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