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.
5-bedroom, 4-bathroom house of 243 m², built in 1987, energy rating D. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: This villa includes two independent living units with private outdoor spaces and balconies offering stunning mountain views, enhancing both privacy and lifestyle options in a tranquil location.
The valuation. The asking price of €890,000 is €59,412 (7.2%) above the fair value of €830,588, indicating the property is fairly priced in the current market. This valuation suggests a balanced investment opportunity without significant immediate excess. Buy-to-flip angle. With high-quality finishes and a desirable location, the buy-to-flip strategy could capitalize on cosmetic upgrades and enhanced marketing to attract buyers, potentially yielding a premium resale price. Realizing significant profits may be possible given current demand trends. Buy-to-let angle. The estimated gross yield of 2.8% translates to approximately €2,077 in monthly rental income, making the property a suitable candidate for long-term and short-term vacation rental strategies. Its proximity to amenities will likely ensure steady demand from renters.
Fair value modelled at €830,588 from 6 comparable sales in the area. Asking €890,000 sits €59,412 (7.2%) above — overpriced versus fair value.
Asking €890,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €715,722 (€2,945/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €715,722, adjusted for condition and micro-location, gives a modelled fair value of €830,588 (€3,418/m²), a €59,412 (7.2%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 3a719c | Subject | €890,000 | €3,663 | — | 72 | 65 |
| Vila Nova de Cacela · b7c2d5 | Active | €530,000 | €3,118 | 14.9% | 76 | 51 |
| Vila Nova de Cacela · 190903 | Active | €605,000 | €3,667 | 0.1% | — | 63 |
| Vila Nova de Cacela · 0dcf5b | Active | €466,000 | €3,641 | 0.6% | 72 | 64 |
| rua do Oriente | Active | €645,000 | €5,039 | 37.6% | 80 | 63 |
| Median comp | €567,500 | €3,654 | 0.2% | 76 | 63 |
Long-term rental The property in Vila Nova de Cacela presents a gross yield of 2.8%, which is relatively low compared to other investment opportunities in the region. While the steady demand from long-term tenants is supported by the area's tourist-driven economy, the fair value assessment indicates that it is fairly priced, limiting potential for significant cash flow growth. Short-term vacation rental Given the property's proximity to the Algarve and its favorable condition score of 76/100, it may attract short-term vacation renters, yet the yield of 2.8% suggests limited profitability. Since the property is assessed as fair, investors should be cautious as competitive short-term markets could impact occupancy and returns. Buy-and-hold Investing in this property as a buy-and-hold strategy offers stability in a community with good amenities and a tourism-dependent economy. However, with a fair valuation and moderation in yield potential, the long-term appreciation may be constrained.
Economic vulnerability risk The property faces a risk due to its low economic stability score of 55/100, indicating potential susceptibility to market fluctuations which may affect rental income.
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