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.
6-bedroom, 6-bathroom country_house of 518 m². Located on caminho do Canal, Santa Bárbara de Nexe parish, Faro municipality, Faro district. This estate features traditional Algarvian craftsmanship highlighted by hand-painted ceilings and terracotta floors, alongside an elegant heated swimming pool and a private tennis court for leisure.
The valuation. The asking price of €3,750,000 is significantly above the fair value of €2,453,851, indicating an overvaluation of €1,296,149 (52.8%). This discrepancy suggests caution for potential investors.
Fair value modelled at €2,453,851 from 6 comparable sales in the area. Asking €3,750,000 sits €1,296,149 (52.8%) above — overpriced versus fair value.
Asking €3,750,000 versus the caminho do Canal area baseline of €2,317,141 (€4,473/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 is below the parish average, reducing 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 €2,317,141, adjusted for condition and micro-location, gives a modelled fair value of €2,453,851 (€4,737/m²), a €1,296,149 (52.8%) gap versus the €3,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho do Canal | Subject | €3,750,000 | €7,239 | — | 73 | 61 |
| Loulé (São Clemente) · 032472 | Active | €2,700,000 | €5,510 | 23.9% | 78 | 63 |
| calçada Portuguesa Nota | Active | €1,385,000 | €4,695 | 35.1% | 84 | 61 |
| Santa Bárbara de Nexe · 911651 | Active | €1,200,000 | €4,364 | 39.7% | 74 | 68 |
| caminho da Goldra | Active | €1,200,000 | €2,727 | 62.3% | 81 | 73 |
| Median comp | €1,292,500 | €4,530 | 37.4% | 80 | 66 |
Short-term vacation rental Despite the attractive tourism appeal of Santa Bárbara de Nexe, the property listing at €3,750,000 is significantly above the fair value of €2,453,851, resulting in a 52.8% gap. The low 2.8% gross yield indicates that this investment is unlikely to produce adequate returns, especially given the condition and neighborhood ratings. Long-term rental With a fair value assessed at €2,453,851, the property is priced 52.8% higher at €3,750,000, which diminishes its potential for long-term rental profitability. Furthermore, the 2.8% gross yield does not align with typical expectations for sustainable long-term rental returns. Buy-and-hold The current listing price of €3,750,000 is 52.8% above its fair value of €2,453,851, indicating significant overpricing that hampers the investment's growth potential. Given the low yield of 2.8% and the neighborhood quality, buying and holding this property may not yield the expected appreciation over time.
Moderate Rent Default Risk The economic stability score of 55 suggests a potential for increased rent defaults, particularly as tenant stability is also at a moderate 60, indicating possible uncertainty in tenant retention.
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