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, 4-bathroom villa of 180 m², built in 1951, energy rating B. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: This villa includes an outdoor kitchen crafted from authentic Santa Catarina stone, enhancing its appeal for alfresco dining while enjoying panoramic sea views. Additional Context: A productive vegetable garden adds sustainability to this luxurious coastal home.
The valuation. The asking price of €1,400,000 significantly exceeds the fair value of €894,959, representing an overvaluation of €505,041 (56.4%). This property is overpriced based on current market conditions.
Fair value modelled at €894,959 from 6 comparable sales in the area. Asking €1,400,000 sits €505,041 (56.4%) above — overpriced versus fair value.
Asking €1,400,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €747,560 (€4,153/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €747,560, adjusted for condition and micro-location, gives a modelled fair value of €894,959 (€4,972/m²), a €505,041 (56.4%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 3a73ed | Subject | €1,400,000 | €7,778 | — | 80 | 61 |
| Santa Bárbara de Nexe · d748c1 | Active | €840,000 | €5,793 | 25.5% | 80 | 62 |
| estrada de Loulé, 216A | Active | €1,290,000 | €4,418 | 43.2% | 82 | 67 |
| urbanização Bordeira | Active | €879,000 | €3,516 | 54.8% | 75 | 64 |
| autoestrada EM520-1, 340 | Active | €2,250,000 | €4,611 | 40.7% | 85 | 72 |
| Median comp | €1,084,500 | €4,515 | 42.0% | 81 | 66 |
Short-term vacation rental Given the property's significant price gap, it would struggle to generate adequate returns in the vacation rental market, limiting income potential. With a gross yield of only 2.1%, the investment outlook is hampered by the high acquisition cost relative to fair market value. Long-term rental The 3-bed villa's high listing price creates challenges for attracting long-term tenants, particularly with a median neighborhood rating of 61/100. The low yield of 2.1% indicates that holding this property for rental income may not be a sustainable strategy in such an overpriced market. Buy-and-hold Investing in this property as a buy-and-hold strategy seems unwise due to its overvaluation, as indicated by the 56.4% gap from fair value. The modest condition score of 85/100 suggests maintenance may become a burden, further eroding long-term profitability.
Economic Vulnerability The property faces a risk due to a low economic stability score of 55/100, indicating potential fluctuations in market conditions that could impact rental income.
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