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, 5-bathroom house of 285 m², built in 2011, energy rating C. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. The villa features a versatile basement lounge ideal for entertainment or additional living space, along with an outdoor BBQ area equipped with a traditional wood oven.
The valuation. The asking price of €850,000 is just €13,562 below the fair value of €863,562, making it a property priced at roughly 1.6% under fair market value. This indicates a favorable position for potential investors.
Fair value modelled at €863,562 from 6 comparable sales in the area. Asking €850,000 sits €13,562 (1.6%) below — the upside to fair value.
Asking €850,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €673,889 (€2,365/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €673,889, adjusted for condition and micro-location, gives a modelled fair value of €863,562 (€3,030/m²), a €13,562 (1.6%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · f14ba5 | Subject | €850,000 | €2,982 | — | 76 | 60 |
| Vila Nova de Cacela · 19f541 | Active | €455,000 | €3,095 | 3.8% | 70 | 58 |
| Vila Nova de Cacela · 86ca95 | Active | €475,000 | €3,231 | 8.3% | 70 | 58 |
| urbanização Bela Praia | Active | €450,000 | €1,490 | 50.0% | 68 | 64 |
| Vila Nova de Cacela · 82c76b | Active | €670,000 | €3,284 | 10.1% | 76 | 64 |
| Median comp | €465,000 | €3,163 | 6.1% | 70 | 61 |
Long-term rental The 3-bed house in Vila Nova de Cacela offers a gross yield of 1.9%, which is relatively low for long-term rental investments in the region. With a fair value of €863,562 and the listing price only slightly below that, the property appears fairly aligned with market expectations, limiting upside potential for rental income. Short-term vacation rental While the property's location in Algarve makes it attractive for short-term vacation rentals, the yield of 1.9% suggests that current pricing may not support strong returns for this strategy. Given its fair value designation, the potential for appreciation or increased demand is constrained, which could impact occupancy rates and profitability. Buy-and-hold As a buy-and-hold investment, the house holds reasonable fair market pricing, yet with a yield of only 1.9%, it lacks the appeal for significant capital growth. The marginal gap to fair value indicates limited room for appreciation over time, making this a cautious investment option for long-term holds.
Economic Vulnerability The economic stability score of 50/100 indicates a heightened risk that unfavorable market conditions could negatively impact property values and 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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