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 villa of 240 m², built in 2010, energy rating A. Located on rua Otilio Dourado, Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Noteworthy Features: This villa's spectacular 43 m² rooftop terrace offers unobstructed panoramic views of Ria Formosa and the Atlantic Ocean, enhancing its appeal as a luxurious coastal retreat.
The valuation. The asking price of €575,000 sits significantly below the fair value of €944,792, representing a discount of €369,792, or 39.1%. This indicates the property is underpriced in the current market.
Fair value modelled at €944,792 from 6 comparable sales in the area. Asking €575,000 sits €369,792 (39.1%) below — the upside to fair value.
Asking €575,000 versus the rua Otilio Dourado area baseline of €799,858 (€3,333/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €799,858, adjusted for condition and micro-location, gives a modelled fair value of €944,792 (€3,937/m²), a €369,792 (39.1%) gap versus the €575,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Otilio Dourado | Subject | €575,000 | €2,396 | — | 80 | 57 |
| Luz de Tavira e Santo Estévão · ba57fe | Active | €575,000 | €2,500 | 4.3% | 72 | 52 |
| praça da República | Active | €799,000 | €4,296 | 79.3% | 75 | 70 |
| Luz de Tavira e Santo Estévão · 389d15 | Active | €1,499,000 | €3,578 | 49.3% | 74 | 58 |
| Luz de Tavira e Santo Estévão · 261f45 | Active | €1,399,000 | €3,347 | 39.7% | 80 | 52 |
| Median comp | €1,099,000 | €3,463 | 44.5% | 75 | 55 |
Long-term rental This property demonstrates a promising potential for long-term rental income, with a gross yield of 3.8%, appealing to tenants seeking a rural lifestyle in the Algarve. The valuation gap of 39.1% compared to fair market value suggests that this investment offers significant upside in rental returns relative to the price paid. Value-add renovation Investing in value-add renovations could enhance both the property's condition rating of 82/100 and its appeal in the local market, leading to increased rental yields or resale value. The current listing price reflects an opportunity to leverage improvements to align more closely with the €944,792 fair value, indicating strong potential for appreciation post-renovation.
Economic Vulnerability The property's economic stability score of 45 indicates a high risk of economic downturn, which may adversely affect rental demand and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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