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, 3-bathroom villa of 380 m², built in 1999, energy rating D. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. This property offers dual private terraces with stunning panoramic views, enhancing its appeal for outdoor relaxation and entertainment.
The valuation. The asking price of €850,000 is significantly below the fair value of €1,068,641, indicating a pricing gap of €218,641 or 20.5%. This suggests the property is subvalued, presenting an attractive investment opportunity.
Fair value modelled at €1,068,641 from 6 comparable sales in the area. Asking €850,000 sits €218,641 (20.5%) below — the upside to fair value.
Asking €850,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €1,090,752 (€2,870/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 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 €1,090,752, adjusted for condition and micro-location, gives a modelled fair value of €1,068,641 (€2,812/m²), a €218,641 (20.5%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 8317a3 | Subject | €850,000 | €2,237 | — | 75 | 63 |
| Santa Bárbara de Nexe · 3a730c | Active | €729,000 | €2,651 | 18.5% | 71 | 56 |
| beco da Laranjeira, 360A | Active | €600,000 | €3,704 | 65.6% | 76 | 64 |
| rua Manuel da Luz Afonso, 46 | Active | €675,000 | €1,650 | 26.2% | — | 63 |
| caminho do Barranco | Active | €995,000 | €2,734 | 22.2% | 70 | 66 |
| Median comp | €702,000 | €2,693 | 20.4% | 71 | 64 |
Short-term vacation rental This 3-bed villa boasts a strong gross yield of 7.2%, indicating substantial potential for returns through short-term rental strategies. With the appealing location in the Algarve region attracting a steady influx of tourists, this property is positioned well to capitalize on the vacation rental market. Buy-and-hold The property is currently listed at €850,000, which represents a 20.5% discount compared to its fair value of €1,068,641, making it an attractive long-term investment. As the local housing market and economy continue to benefit from seasonal tourism, holding this asset promises future appreciation. Family rental Located in a moderately rated neighborhood (63/100), this villa offers ample space for families looking for long-term rental options. The balanced yield and the proximity to amenities enhance its attractiveness for family tenants, ensuring a steady income stream. Not ideal for student housing Given the villa's size and rental yield dynamics, it does not align well with typical student housing needs, which often demand more economical options. The economic stability in the area, influenced by seasonal employment, further limits the appeal for this demographic. Not ideal for luxury market While the property has commendable features, its condition rating of 70/100 suggests that it does not meet the high aesthetic and quality standards typically expected in the luxury market. Consequently, buyers seeking premium real estate might overlook this villa despite its attractive location.
Economic downturn risk A low economic stability score of 55/100 suggests a potential for economic downturns that could negatively impact tenant demand 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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