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 house of 124 m², built in 2023, energy rating B. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. This property features a rooftop terrace with unobstructed ocean views, perfect for sunset relaxation, and has a dual solar panel system enhancing its energy efficiency.
The valuation. The asking price of €498,000 is significantly below the fair value of €872,461, presenting an opportunity for appreciation of €374,461 (42.9%). This property is considered underpriced. Buy-to-flip angle. The strategy would involve renovating this high-quality property and reselling it in the competitive Algarve market, capitalizing on the substantial difference between the asking price and its fair value. Buy-to-let angle. A rental income strategy could generate approximately €1,245 per month, providing a gross yield of 3%, making it attractive for long-term investment in a mixed neighborhood popular with tourists.
Fair value modelled at €872,461 from 6 comparable sales in the area. Asking €498,000 sits €374,461 (42.9%) below — the upside to fair value.
Asking €498,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €769,916 (€6,209/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €769,916, adjusted for condition and micro-location, gives a modelled fair value of €872,461 (€7,036/m²), a €374,461 (42.9%) gap versus the €498,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · f46aea | Subject | €498,000 | €4,016 | — | 85 | 58 |
| Vila Nova de Cacela · 3df237 | Active | €450,000 | €4,369 | 8.8% | 78 | 61 |
| rua Dom Dinis | Active | €495,000 | €8,390 | 108.9% | 78 | 61 |
| Altura · ade62c | Active | €495,000 | €8,250 | 105.4% | 80 | 60 |
| Vila Nova de Cacela · ba57b8 | Active | €435,000 | €3,425 | 14.7% | 75 | 56 |
| Median comp | €472,500 | €6,310 | 57.1% | 78 | 61 |
Short-term vacation rental This property is ideally situated in the Algarve, a region renowned for its tourism, making it a prime candidate for short-term vacation rentals with potential for high occupancy. The current pricing represents a 42.9% gap from fair value, suggesting a strong opportunity for rental income. Family rental With its three bedrooms and favorable condition rating of 84/100, this property is well-suited for family rentals, appealing to those seeking a comfortable living space in a beautiful area. Despite a lower neighborhood rating of 58/100, the fair value suggests that even at a 3% gross yield, the property remains an attractive long-term investment for families. Buy-and-hold This property represents a strategic buy-and-hold investment given that it is subvalued compared to fair market conditions, providing an opportunity for capital appreciation over time. Investing here leverages the increasing demand for properties in the Algarve, especially with the potential for future renovations that could further enhance value. Not ideal for: Student housing is less suitable due to the property’s size and neighborhood demographics, and the luxury market is not a match given local market conditions. Furthermore, this property does not align with industrial use requirements due to its residential classification.
Economic Vulnerability The property faces economic vulnerability due to an economic stability score of 55/100, indicating potential market fluctuations and declining demand that could impact 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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