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.
5-bedroom, 5-bathroom villa of 375 m², built in 2021, energy rating D. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. This villa features an infinity pool overlooking the countryside and a master suite with a freestanding bathtub strategically positioned for panoramic sea views.
The valuation. The asking price of €1,500,000 is positioned slightly above the fair value of €1,461,614, showing a difference of €38,386 (2.6%). This indicates that the property is priced at a level that is reasonable for its market. Buy-to-flip angle. The potential for a resale strategy is strengthened through value-added renovations, as the property’s high condition score of 87/100 can yield substantial returns over time. Buyers could target a premium due to its custom design elements. Buy-to-let angle. A rental income strategy may be challenging given the estimated gross yield of 0%. However, leveraging the villa’s upscale finishes, long-term rentals could attract high-end tenants willing to pay a premium for quality living in the Algarve.
Fair value modelled at €1,461,614 from 5 comparable sales in the area. Asking €1,500,000 sits €38,386 (2.6%) above — overpriced versus fair value.
Asking €1,500,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €1,079,823 (€2,880/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 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 €1,079,823, adjusted for condition and micro-location, gives a modelled fair value of €1,461,614 (€3,898/m²), a €38,386 (2.6%) gap versus the €1,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 19085c | Subject | €1,500,000 | €4,000 | — | 80 | 54 |
| Conceição e Cabanas de Tavira · 420173 | Active | €495,000 | €3,898 | 2.6% | 76 | 68 |
| Vila Nova de Cacela · 6f405a | Active | €745,000 | €4,967 | 24.2% | 75 | 52 |
| via Pública | Active | €1,500,000 | €4,518 | 13.0% | — | 57 |
| Conceição e Cabanas de Tavira · 938967 | Active | €495,000 | €2,368 | 40.8% | 80 | 59 |
| Median comp | €620,000 | €4,208 | 5.2% | 76 | 58 |
Long-term rental The 5-bed villa in Vila Nova de Cacela presents a stagnant yield of 0%, indicating that it may not generate any immediate cash flow from long-term tenants. Given the neighbourhood score of 54/100, attracting high-quality tenants may prove challenging. Buy-and-hold Although the property is listed fairly at €1,500,000 with a small gap of 2.6% versus its fair value, the limited growth potential in the surrounding area suggests that capital appreciation may be slow. The current condition rating of 87/100 reveals a well-maintained property, yet the lack of strong economic indicators in the neighbourhood could hinder long-term investment gains. Value-add renovation A targeted renovation strategy could enhance the property's appeal, raising its condition from a solid 87/100 and potentially increasing rental income down the line. However, with the neighbourhood scoring only 54/100, any renovations should be carefully planned to ensure they address specific market demands and improve tenant attraction. Not ideal for This property is not suited for short-term vacation rentals or student housing due to its reliance on car transport and the overall quality of the neighbourhood. Furthermore, its positioning in the luxury market may not justify the asking price given the local economic conditions.
Economic Vulnerability The economic stability score of 50/100 indicates a significant risk of economic downturns affecting the property's value and demand in the market. Tenant Turnover Risk With a tenant stability score of 55/100, there's an elevated risk of vacancies and turnover, potentially leading to increased costs and reduced cash flow.
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