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, 5-bathroom villa of 466 m², built in 2023, energy rating A+. Located Faro municipality, Faro district. This villa features bespoke landscaping with Mediterranean flora and customizable pool options, enhancing its outdoor charm while providing serene views of the Ria Formosa lagoon.
The valuation. The asking price of €3,200,000 is €773,891 (31.9%) above the fair value of €2,426,109, indicating that the property is overpriced.
Fair value modelled at €2,426,109 from 6 comparable sales in the area. Asking €3,200,000 sits €773,891 (31.9%) above — overpriced versus fair value.
Faro, Faro area median of €1,505,646 (€3,231/m²) for a property of this size — the starting reference point before comparable sales are factored in.
6 comparable sales in the area adjust the estimate by +€920,463 versus the parish baseline.
Parish baseline €1,505,646 +€920,463 comparables adjustment = modelled fair value of €2,426,109 (€5,206/m²), a €773,891 (31.9%) gap versus the €3,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| a79e93 | Subject | €3,200,000 | €6,867 | — | 85 | 71 |
| Conceição e Estoi · 467e2f | Active | €950,000 | €4,130 | 39.9% | 76 | 55 |
| Faro (Sé e São Pedro) · f3632c | Active | €920,000 | €3,098 | 54.9% | 79 | 60 |
| Conceição e Estoi · 4d4664 | Active | €1,850,000 | €7,400 | 7.8% | — | 58 |
| rua Veríssimo de Almeida | Active | €550,000 | €3,793 | 44.8% | 75 | 71 |
| Median comp | €935,000 | €3,962 | 42.3% | 76 | 59 |
Long-term rental This 4-bed villa in Faro, priced at €3,200,000, is overpriced compared to its fair value of €2,426,109, presenting a gap of 31.9%. With a gross yield of only 1.7%, this investment lacks the cash flow potential typically expected in stable long-term rental opportunities. Short-term vacation rental While the Algarve region is popular with tourists, the €3,200,000 price tag on this villa signifies it is overpriced by 31.9% against its fair value of €2,426,109. The seasonal nature of tourism may further limit profitability, as the gross yield of 1.7% suggests suboptimal rental income during peak seasons. Buy-and-hold The investment thesis for a buy-and-hold strategy is undermined by the villa's listing price of €3,200,000, which is overpriced by 31.9% relative to its fair value of €2,426,109. Current conditions and a low gross yield of 1.7% indicate that holding this property long-term may not yield desirable returns. Not ideal for: Student housing and industrial use due to the property's premium pricing and location dynamics.
Economic Vulnerability With an economic stability score of 55/100, this property is at risk of declining market conditions that could negatively impact rental income and property value.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Login Required
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Sign in to buy the report or use a credit
