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, 4-bathroom house of 304 m², energy rating D. Located Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Noteworthy Features: The property includes two independent units ideal for rental income and a secluded outdoor area featuring fruit trees, enhancing its appeal for rural tourism investments.
The valuation. The asking price of €1,300,000 is €416,786 (24.3%) below the fair value of €1,716,786, positioning this property as a solid investment opportunity due to its undervalued status.
Fair value modelled at €2,090,000 from 5 comparable sales in the area. Asking €1,300,000 sits €790,000 (37.8%) below — the upside to fair value.
Asking €1,300,000 versus the Luz de Tavira e Santo Estévão, Tavira, Faro area baseline of €1,881,326 (€6,189/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 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 €1,881,326, adjusted for condition and micro-location, gives a modelled fair value of €2,090,000 (€6,875/m²), a €790,000 (37.8%) gap versus the €1,300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz de Tavira e Santo Estévão · 65303b | Subject | €1,300,000 | €4,276 | — | 65 | 66 |
| rua de Arte Nova | Active | €585,000 | €2,813 | 34.2% | 65 | 61 |
| autoestrada N125, 824 | Active | €1,990,000 | €5,378 | 25.8% | — | 60 |
| jardim Pechão | Active | €550,000 | €6,875 | 60.8% | 72 | 64 |
| Luz de Tavira e Santo Estévão · 19f7b3 | Active | €864,000 | €7,200 | 68.4% | 70 | 70 |
| Median comp | €724,500 | €6,127 | 43.3% | 70 | 63 |
Short-term vacation rental The property is positioned well for short-term vacation rentals, capitalizing on the robust tourism demand in the Algarve, which supports a 2.2% gross yield. Given the gap from the fair value at 24.3%, investors can leverage appreciation potential alongside seasonal rental income. Long-term rental While the yield is relatively low at 2.2%, the property benefits from an appealing location that can attract stable tenants, despite seasonal job market impacts on economic stability. The gap of 24.3% from the fair value suggests that purchasing now could offer significant appreciation potential in the long run. Buy-and-hold Acquiring this property as a buy-and-hold investment aligns well with the expected appreciation, as it is currently undervalued by 24.3% against its fair value. The area's strong market fundamentals can provide an investor with steady growth and income over time, despite short-term fluctuations in demand. Not ideal for: This property is not suitable for student housing or the luxury market due to its general neighborhood scores of 66/100. Additionally, it is not fit for industrial investment given the residential nature of the location.
Economic Vulnerability With an economic stability score of 60/100 and tenant stability score of 62/100, the property faces a higher risk of fluctuating demand and potential rent instability, impacting overall return on investment.
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