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.
1-bedroom, 1-bathroom apartment of 61 m² on the 1st floor, energy rating D. Located Sagres parish, Vila do Bispo municipality, Faro district. Noteworthy Features: The property boasts a second larger terrace with wind protection and guaranteed sunset views over the ocean, enhancing outdoor entertaining potential. Rental Potential: Eligible for a tourist rental license, ideal for generating income year-round.
The valuation. The asking price of €315,000 sits significantly above fair value, which is assessed at €250,266. This represents an excess of €64,734 (25.9%), indicating that the property is overpriced.
Fair value modelled at €250,266 from 6 comparable sales in the area. Asking €315,000 sits €64,734 (25.9%) above — overpriced versus fair value.
Asking €315,000 versus the Sagres, Vila do Bispo, Faro area baseline of €236,533 (€3,878/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 58/100 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 €236,533, adjusted for condition and micro-location, gives a modelled fair value of €250,266 (€4,103/m²), a €64,734 (25.9%) gap versus the €315,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Sagres · efdd75 | Subject | €315,000 | €5,164 | — | 60 | 71 |
| Sagres · 1908be | Active | €451,300 | €4,103 | 20.6% | — | 72 |
| Sagres · 4d444c | Active | €299,500 | €4,218 | 18.3% | 75 | 77 |
| Sagres · 3d9651 | Active | €451,300 | €4,103 | 20.6% | 75 | 62 |
| Sagres · b7c16f | Active | €700,000 | €10,448 | 102.3% | — | 73 |
| Median comp | €451,300 | €4,161 | 19.4% | 75 | 73 |
Short-term vacation rental This 1-bed apartment in Sagres is overpriced at €315,000 compared to a fair value of €250,266, leading to a 25.9% gap that can hinder profitability in the crowded vacation rental market. Seasonal economic fluctuations typical of tourist areas further reduce the potential for consistent rental income, establishing this property as a risky short-term investment. Long-term rental Given the gross yield of 0% and the high listing price, this apartment does not present a viable opportunity for long-term rental income, especially since it exceeds the fair value by 25.9%. The combined challenges of the property's condition and seasonal tenant quality in the Algarve make it less attractive for stable, long-term leasing. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable since it is listed at €315,000 while fair value is significantly lower at €250,266, indicating 25.9% overpricing. The property’s poor condition and the inherent market volatility in tourist locations diminish the likelihood of significant appreciation over time, rendering it a suboptimal choice for long-term growth. Not ideal for: - Student housing - Luxury market - Value-add renovation
Economic Sensitivity The economic stability score of 65 indicates potential vulnerability to market fluctuations that could impact rental income and property value.
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