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 120 m², built in 1986, energy rating C. Located on jardim no Aldeamento Pedras d'El Rei, Santa Luzia parish, Tavira municipality, Faro district. Noteworthy Features: The property includes a private saltwater pool surrounded by a solid wood deck, and its location allows easy access to nearby natural attractions like Praia do Barril. Valuation Verdict: Fair
The valuation. The asking price of €950,000 exceeds the fair value of €553,563 by €396,437, representing a 71.6% markup. This property is clearly overpriced in comparison to its market valuation.
Fair value modelled at €553,563 from 6 comparable sales in the area. Asking €950,000 sits €396,437 (71.6%) above — overpriced versus fair value.
Asking €950,000 versus the jardim no Aldeamento Pedras d'El Rei area baseline of €498,625 (€4,155/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €498,625, adjusted for condition and micro-location, gives a modelled fair value of €553,563 (€4,613/m²), a €396,437 (71.6%) gap versus the €950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| jardim no Aldeamento Pedras d'El Rei | Subject | €950,000 | €7,917 | — | 77 | 62 |
| rua Sacadura Cabral, 8 | Active | €890,000 | €7,120 | 10.1% | 70 | 63 |
| Tavira (Santa Maria e Santiago) · 190863 | Active | €985,000 | €3,648 | 53.9% | 78 | 67 |
| rua José Oliveira | Active | €475,000 | €2,654 | 66.5% | — | 58 |
| rua Capitão Jorge Ribeiro, 145 | Active | €1,250,000 | €6,443 | 18.6% | 74 | 61 |
| Median comp | €937,500 | €5,046 | 36.3% | 74 | 62 |
Long-term rental Given the high gap between the listing price of €950,000 and the fair value of €553,563, this property is not suitable for long-term rental investment. With a gross yield of only 2.4%, the potential returns do not justify the purchase price, indicating a significant financial risk for investors. Short-term vacation rental The reliance on seasonal tourism in the Algarve makes this property a less-than-ideal candidate for short-term vacation rentals, especially considering it is overpriced at €950,000 against a fair value of €553,563. The neighbourhood rating of 62/100 does not provide sufficient assurance for attracting high-demand tourists, further compounding the investment risk. Buy-and-hold Investing in this property as a buy-and-hold strategy is inadvisable, as the significant 71.6% gap from fair value suggests a high likelihood of financial strain. The gross yield of 2.4% reflects an unattractive long-term investment potential, making it difficult to justify the price even in a rejuvenated market. Not ideal for: Student housing, Luxury market This property is clearly not suited for student housing or positioning in the luxury market, particularly given its overpriced valuation and neighbourhood score. The lack of fundamental value in the pricing further underscores its detachment from both target market segments.
Economic Vulnerability The economic stability score of 55/100 indicates a potential risk of market volatility that could affect property values and rental income.
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