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 108 m², built in 2003, energy rating E. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. This property features an outdoor patio with a barbecue and shower, perfect for post-beach relaxation, along with a bright living space that enhances the indoor-outdoor connection.
The valuation. The asking price of €550,000 is significantly above fair value at €405,333, resulting in an overpricing of €144,667 (35.7%). This disparity indicates that the property is not a prudent financial investment at the current asking price.
Fair value modelled at €405,333 from 6 comparable sales in the area. Asking €550,000 sits €144,667 (35.7%) above — overpriced versus fair value.
Asking €550,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €354,031 (€3,278/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 71/100 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 €354,031, adjusted for condition and micro-location, gives a modelled fair value of €405,333 (€3,753/m²), a €144,667 (35.7%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 15e07a | Subject | €550,000 | €5,093 | — | 75 | 55 |
| Vila Nova de Cacela · 6c7892 | Active | €550,000 | €5,978 | 17.4% | 72 | 57 |
| Vila Nova de Cacela · b32806 | Active | €425,000 | €3,195 | 37.3% | 70 | 61 |
| urbanização Orlamar | Active | €650,000 | €5,702 | 12.0% | — | 54 |
| Vila Nova de Cacela · 4d4208 | Active | €466,000 | €3,641 | 28.5% | 72 | 53 |
| Median comp | €508,000 | €4,672 | 8.3% | 72 | 56 |
Long-term rental The property’s gross yield of 3.2% is below typical expectations for rental investments, indicating a less favorable return on investment for long-term rental strategies. Additionally, with a condition rating of 71/100 and a neighborhood score of 55/100, the overall appeal may limit tenant quality and rental demand, reinforcing that the property is overpriced at €550,000. Value-add renovation While value-add renovation could potentially improve the property’s condition and rental prospects, the current asking price of €550,000 remains significantly above the fair value of €405,333, presenting a substantial financial risk with a 35.7% gap. This strategy may not be feasible given the existing neighborhood ratings and the property’s position in a less central Algarve location, signaling that it is overpriced. Student housing This property is not suitable for student housing due to its relatively high pricing and an inadequate yield of 3.2%, which does not typically attract student tenants. The neighborhood's low score of 55/100 further indicates limited appeal for the student demographic, affirming that the property is overpriced at its current listing. Luxury market Given the property is located in a less central area of Algarve and carries a neighborhood score of only 55/100, it does not meet luxury market expectations, especially at a listing price of €550,000. The significant gap from the fair value, combined with a modest yield of 3.2%, indicates that this property is overpriced and unlikely to attract luxury buyers.
Economic Volatility Risk The economic stability score of 45/100 indicates a higher likelihood of economic downturns affecting 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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