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 apartment of 100 m², energy rating E. Located on rua Doutor José Colaço Fernandes, 4, Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. This apartment's remodel includes high-quality fixtures and finishes, ensuring a luxurious feel while maintaining a practical layout suitable for both living and investment purposes.
The valuation. The asking price of €450,000 exceeds the fair value of €414,337 by €35,663 (8.6%). While the property is adequately priced in terms of market trends, the premium may limit immediate investment attractiveness. Buy-to-flip angle. The buy-to-flip strategy capitalizes on market demand in Vila Nova de Cacela, targeting resale for a profit, especially considering the property's high-quality finishes. Renovations can enhance value, aiming for quick turnovers. Buy-to-let angle. The estimated rental income of €975/month offers a gross yield of 2.6%, appealing for long-term buy-to-let investments. The strategic location benefits from proximity to Faro, potentially attracting reliable tenants seeking modern amenities.
Fair value modelled at €414,337 from 6 comparable sales in the area. Asking €450,000 sits €35,663 (8.6%) above — overpriced versus fair value.
Asking €450,000 versus the rua Doutor José Colaço Fernandes, 4 area baseline of €353,838 (€3,538/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €353,838, adjusted for condition and micro-location, gives a modelled fair value of €414,337 (€4,143/m²), a €35,663 (8.6%) gap versus the €450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Doutor José Colaço Fernandes, 4 | Subject | €450,000 | €4,500 | — | 75 | 56 |
| Vila Nova de Cacela · 86cbdd | Active | €320,000 | €4,051 | 10.0% | 75 | 46 |
| Altura · 23f20c | Active | €305,000 | €4,236 | 5.9% | 75 | 62 |
| Vila Nova de Cacela · bf28af | Active | €300,000 | €4,286 | 4.8% | 73 | 55 |
| Vila Nova de Cacela · 6fbc41 | Active | €300,000 | €1,987 | 55.8% | 62 | 56 |
| Median comp | €302,500 | €4,144 | 7.9% | 74 | 56 |
Long-term rental With a gross yield of 2.6%, the returns from this property in Vila Nova de Cacela may not be attractive for long-term rental investors seeking higher income potential. Additionally, the neighbourhood's rating of 56/100 suggests limited tenant appeal, which may lead to challenges in securing reliable long-term tenants. Short-term vacation rental The property’s condition rating of 79/100 is decent for short-term vacation rentals, yet the 2.6% yield indicates that the investment may not generate significant profits compared to other options in the Algarve region. Given the fair value assessment, there is a risk that pricing expectations may outpace market demand, impacting occupancy rates. Buy-and-hold Investing in this property as a buy-and-hold strategy may seem reasonable; however, the fair valuation suggests limited upside potential for appreciation in the rural Algarve market. Additionally, with a neighbourhood quality score of 56/100, long-term growth prospects could be hindered, necessitating careful consideration of the holding period. Not ideal for luxury market This property does not align with the luxury market, as its characteristics and location do not support high-end pricing despite its fair value. Buyers should be aware that competing luxury listings in more sought-after areas of the Algarve may dilute potential demand. Not ideal for student housing Given the rural setting of Vila Nova de Cacela, this property is not well-suited for student housing investments, as the tenant pool is likely limited. Additionally, the economic and amenities ratings suggest that the area may lack the infrastructure that attracts students, further diminishing its viability for this strategy.
Economic Vulnerability The property's economic stability score of 60/100 indicates a moderate risk of economic downturns affecting tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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