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, 4-bathroom villa of 166 m². Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: This villa includes a separate covered dining area with a reed roof, perfect for shaded gatherings, and boasts a landscaped kitchen garden with already planted vegetables.
The valuation. The asking price of €1,400,000 is significantly above the fair value of €721,498, resulting in a disparity of €678,502, or 94.0%. Verdict: overpriced. Buy-to-flip angle. A buy-to-flip strategy may prove challenging; resale would necessitate significant market appreciation, given the current asking price that far exceeds fair market value. Buy-to-let angle. The rental income strategy yields a gross yield of 1.7% with an estimated monthly income of €1,983, largely influenced by the area's tourism-driven demand for short-term vacation rentals.
Fair value modelled at €721,498 from 6 comparable sales in the area. Asking €1,400,000 sits €678,502 (94.0%) above — overpriced versus fair value.
Asking €1,400,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €651,313 (€3,924/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 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 €651,313, adjusted for condition and micro-location, gives a modelled fair value of €721,498 (€4,346/m²), a €678,502 (94.0%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · a803ab | Subject | €1,400,000 | €8,434 | — | 80 | 66 |
| São Brás de Alportel · 19f6fc | Active | €950,000 | €3,310 | 60.8% | 80 | 71 |
| São Brás de Alportel · ba59aa | Active | €895,000 | €3,524 | 58.2% | 85 | 51 |
| Santa Bárbara de Nexe · 261cbd | Active | €1,450,000 | €4,647 | 44.9% | 85 | 55 |
| Santa Bárbara de Nexe · b32a2f | Active | €1,890,000 | €9,450 | 12.0% | 78 | 63 |
| Median comp | €1,200,000 | €4,086 | 51.6% | 83 | 59 |
Short-term vacation rental The property at €1,400,000 represents a significant premium over the fair value of €721,498, resulting in a gap of 94.0%, which suggests it is overpriced for potential vacation rental income. With a low gross yield of 1.7% and a neighborhood rating of only 66/100, the financial viability of this investment strategy is questionable. Long-term rental Investing in this villa as a long-term rental is not favorable, as the property's €1,400,000 listing price drastically exceeds its fair value at €721,498, reflecting an overpriced situation with a substantial gap of 94.0%. Additionally, the modest yield of 1.7% paired with the neighborhood's average score of 66/100 indicates that long-term tenants may be less attracted to such an expensive option. Buy-and-hold The buy-and-hold strategy is not advisable for this villa given its price of €1,400,000, which vastly outstrips the fair valuation of €721,498, leading to a concerning gap of 94.0% suggesting obsolescence in appreciation potential. The low yield of 1.7% highlights the risks of holding an overpriced property in a market heavily reliant on tourism, particularly with the neighborhood assessment of only 66/100.
Economic Vulnerability The economic stability score of 55/100 suggests a heightened risk of financial instability, which may affect rental income and property value over time.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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