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.
2-bedroom, 4-bathroom house of 147 m², built in 2008, energy rating C. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. This property features a well-designed outdoor patio with a barbecue and sink, perfect for entertaining and enjoying the Algarve's climate.
The valuation. The asking price of €475,000 is slightly below the fair value of €503,293, resulting in a difference of €28,293 (5.6%). This property represents a fair valuation in the current market context. Buy-to-flip angle. A buy-to-flip strategy could capitalize on potential renovations, enhancing the property’s appeal to attract resale buyers, particularly in the vibrant Algarve market. Short-term improvements may yield a profitable return on investment. Buy-to-let angle. With an estimated gross yield of 2.7%, the rental income strategy focuses on short-term vacation rentals to leverage its proximity to tourist spots, providing steady cash flow throughout the year.
Fair value modelled at €503,293 from 6 comparable sales in the area. Asking €475,000 sits €28,293 (5.6%) below — the upside to fair value.
Asking €475,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €435,881 (€2,965/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €435,881, adjusted for condition and micro-location, gives a modelled fair value of €503,293 (€3,424/m²), a €28,293 (5.6%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 86ca95 | Subject | €475,000 | €3,231 | — | 70 | 58 |
| Vila Nova de Cacela · 0dcf5b | Active | €466,000 | €3,641 | 12.7% | 72 | 64 |
| Vila Nova de Cacela · 19f541 | Active | €455,000 | €3,095 | 4.2% | 70 | 58 |
| Vila Nova de Cacela · f5eac1 | Active | €379,500 | €2,965 | 8.2% | 66 | 60 |
| Vila Nova de Cacela · 4d4208 | Active | €466,000 | €3,641 | 12.7% | 72 | 53 |
| Median comp | €460,500 | €3,368 | 4.2% | 71 | 59 |
Short-term vacation rental The property is fairly priced at €475,000, only 5.6% below the fair value of €503,293, suggesting no immediate room for appreciation in value. Given its rural Algarve location and proximity to tourist spots, while attractive, the gross yield of 2.7% indicates limited profitability for short-term rental investments. Buy-and-hold Although the house's fair value suggests stability at €503,293, its yield of 2.7% is relatively low, indicating that it may not generate significant cash flow over the long term. The condition and moderate neighbourhood rating further imply that potential appreciation may be sluggish. Value-add renovation With the current fair market value, investing in renovations could enhance its appeal; however, the property’s overall condition score of 75/100 indicates that while there is potential for improvement, it may not yield a high return relative to the initial investment. Additionally, neighborhoods with a rating of 58/100 indicate that buyers should be cautious about over-investing without clear upside potential in property values.
Tenant turnover risk High tenant turnover may occur due to a tenant stability score of 60/100, indicating potential difficulty in retaining tenants consistently.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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