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.
4-bedroom, 3-bathroom house of 165 m², built in 1980, energy rating E. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Feature: The property includes a spacious yard that provides ample opportunity for outdoor recreational areas, while its three independent living units offer versatile options for family or rental income.
The valuation. The asking price of €605,000 sits 15.5% below the fair value of €716,074. This property is considered underpriced based on current market conditions.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 190903 | Subject | €605,000 | €3,667 | — | — | 63 |
| Vila Nova de Cacela · 0dcf5b | Active | €466,000 | €3,641 | 0.7% | 72 | 64 |
| Vila Nova de Cacela · b32806 | Active | €425,000 | €3,195 | 12.9% | 70 | 61 |
| rua do Oriente | Active | €645,000 | €5,039 | 37.4% | 80 | 63 |
| Vila Nova de Cacela · b7c2d5 | Active | €530,000 | €3,118 | 15.0% | 76 | 51 |
| Median comp | €498,000 | €3,418 | 6.8% | 74 | 62 |
Short-term vacation rental This property’s strategic location in the Algarve, with a fair value exceeding the listing price by 15.5%, presents a lucrative opportunity for short-term vacation rentals, particularly attractive during peak tourist seasons. With a gross yield of 2.7%, this investment captures both the seasonal influx of tourists and the potential for annual appreciation in value. Long-term rental Given the neighborhood's decent score of 63/100 and an undervalued listing, the property is positioned to attract stable long-term tenants seeking quality housing in a desirable tourism-driven area. The combination of the location's seasonal employment and the fair value indicates a positive outlook for rental demand, despite the house's low condition rating. Buy-and-hold Investors should consider this property for a buy-and-hold strategy as it is subvalorizada, providing a buffer against market fluctuations and potential appreciation in the hot Algarve market. The fair value of €716,074 suggests a significant upside potential, supporting long-term value growth through market recovery. Not ideal for student housing Due to the neighborhood's general appeal to tourists rather than students, this property does not offer a viable option for student housing, which typically requires proximity to educational institutions and vibrant local amenities. The seasonal nature of the local economy further highlights its misalignment with student rental needs. Not ideal for luxury market While the property's listing price may suggest a luxury fit, its condition score and overall value position it away from true luxury offerings. The local market dynamics and economic factors indicate that this property is more suited for value-oriented rental strategies rather than being positioned in the luxury sector.
Economic and Tenant Stability Risk The combined economic stability score of 60/100 and tenant stability score of 60/100 indicates potential vulnerability, suggesting that fluctuations in the market could lead to higher vacancy rates or reduced rental income during economic downturns.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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