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.
5-bedroom, 6-bathroom house of 433 m², built in 2005, energy rating B. Located Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Noteworthy Features: The property features an expansive basement with versatile rooms for a home cinema and gym, while the mature tropical garden includes a large salt-water swimming pool and outdoor cooking area for entertaining guests.
The valuation. The asking price of €1,995,000 is significantly higher than the fair value of €1,763,542, resulting in a premium of €231,458 (13.1%). Verdict: overpriced. Buy-to-flip angle. The strategy would involve renovating the property to enhance its value with an aim to sell at a higher price, though the current asking significantly exceeds fair market value. Buy-to-let angle. The potential for rental income is limited, with a gross yield of 0% due to the premium price; however, tourism-driven demand in Algarve could support short-term vacation rentals.
Fair value modelled at €1,763,542 from 6 comparable sales in the area. Asking €1,995,000 sits €231,458 (13.1%) above — overpriced versus fair value.
Asking €1,995,000 versus the Luz de Tavira e Santo Estévão, Tavira, Faro area baseline of €1,480,564 (€3,419/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 €1,480,564, adjusted for condition and micro-location, gives a modelled fair value of €1,763,542 (€4,073/m²), a €231,458 (13.1%) gap versus the €1,995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz de Tavira e Santo Estévão · efdc67 | Subject | €1,995,000 | €4,607 | — | 82 | 54 |
| Luz de Tavira e Santo Estévão · 6fbc8c | Active | €2,750,000 | €11,603 | 151.8% | 85 | 66 |
| Luz de Tavira e Santo Estévão · 28baea | Active | €1,200,000 | €4,332 | 6.0% | 82 | 56 |
| rua Central | Active | €1,800,000 | €3,814 | 17.2% | 85 | 57 |
| Luz de Tavira e Santo Estévão · 652f5b | Active | €2,000,000 | €5,291 | 14.8% | 70 | 60 |
| Median comp | €1,900,000 | €4,812 | 4.4% | 84 | 59 |
Short-term vacation rental While the property in Luz de Tavira e Santo Estévão is located in the tourist-friendly Algarve region, the 0% gross yield makes it an unappealing investment for short-term rentals. Given the listing price of €1,995,000 is 13.1% above fair value, the financial viability of this strategy is compromised. Long-term rental With the property's fair value at €1,763,542 and a significant price increase to €1,995,000, pursuing long-term rental opportunities appears financially unfeasible. Additionally, the neighbourhood's low tenant quality rating of 54/100 indicates a limited pool of reliable long-term renters, further jeopardizing returns. Buy-and-hold The buy-and-hold strategy is undermined by the 0% gross yield, indicating no income generation to support holding costs while the property is overpriced at €1,995,000. Furthermore, with a fair value of €1,763,542, potential appreciation may not compensate for the current cost, making this strategy less attractive in the long term.
Economic Vulnerability The low economic stability score of 45/100 indicates a significant risk of economic downturn affecting property values and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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