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, 1-bathroom house of 164 m², built in 2020. Located Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. This property features a significant 218.50 m² plot size, offering ample outdoor space for potential landscaping or a private garden, enhancing the overall appeal of the renovation project.
The valuation. The asking price of €150,000 is significantly below the fair value of €464,262, indicating an undervalued opportunity with a difference of €314,262 (67.7%). This presents a compelling entry point for investors. Buy-to-flip angle. A buy-to-flip strategy could focus on renovating the property to improve its condition and appeal, targeting a resale price that capitalizes on the significant equity available. Quick, cosmetic updates may yield profits at a favorable after-repair value. Buy-to-let angle. The estimated rental income of €1,888 a month translates to a gross yield of 15.1%, making this property a lucrative buy-to-let option. Long-term tenants or short-term vacation rentals are viable strategies in the revenue-generating semi-rural Algarve market.
Fair value modelled at €464,262 from 6 comparable sales in the area. Asking €150,000 sits €314,262 (67.7%) below — the upside to fair value.
Asking €150,000 versus the Luz de Tavira e Santo Estévão, Tavira, Faro area baseline of €565,494 (€3,448/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 10/100 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 €565,494, adjusted for condition and micro-location, gives a modelled fair value of €464,262 (€2,831/m²), a €314,262 (67.7%) gap versus the €150,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz de Tavira e Santo Estévão · ee894e | Subject | €150,000 | €915 | — | — | 56 |
| Luz de Tavira e Santo Estévão · 38b68b | Active | €450,000 | €2,571 | 181.1% | 25 | 59 |
| Moncarapacho e Fuseta · 93742b | Active | €485,000 | €4,491 | 391.0% | 18 | 65 |
| Luz de Tavira e Santo Estévão · 38b4f6 | Active | €175,000 | €1,636 | 78.8% | — | 63 |
| Luz de Tavira e Santo Estévão · 388dd8 | Active | €1,100,000 | €3,022 | 230.4% | 59 | 61 |
| Median comp | €467,500 | €2,797 | 205.8% | 25 | 62 |
Long-term rental This property offers a compelling long-term rental opportunity with a gross yield of 15.1%, significantly above market expectations. The semi-rural location in Luz de Tavira e Santo Estévão, combined with proximity to coastal amenities, makes it attractive for families and permanent residents seeking affordable housing. Short-term vacation rental With a fair value of €464,262, this property is positioned to generate strong returns in the short-term vacation rental market, especially given the tourism influence in the Algarve region. The combined appeal of its location and condition provides a unique opportunity to capitalize on the growing demand for vacation rentals in this area, despite its current state needing significant improvement. Not ideal for luxury market The property's current condition, rated at 10/100, suggests it does not meet the expectations for the luxury market, where high-quality finishes and amenities are paramount. Investors targeting the luxury segment should look for properties with better conditions and higher ratings. Not ideal for student housing Given the demographic and economic conditions of the area, this property is not well-suited for the student housing market. The neighborhood's rating of 56/100 indicates a lack of significant amenities and student-centric services, which could hinder rental demand from this demographic.
Market Volatility Risk The economic stability score of 50/100 indicates a potential for market fluctuations, which could affect property value 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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