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 602 m², energy rating D. Located Castro Marim parish, Castro Marim municipality, Faro district. Charming One-Story House: This additional structure offers excellent potential to create a self-contained guesthouse, enhancing the property's versatility and furthering its appeal for family or rental use.
The valuation. The asking price of €369,200 is significantly below the fair value of €1,333,954, translating to a discount of €964,754 or 72.3%. This presents a compelling opportunity for potential investors given the underpriced nature of the property.
Fair value modelled at €1,333,954 from 6 comparable sales in the area. Asking €369,200 sits €964,754 (72.3%) below — the upside to fair value.
Asking €369,200 versus the Castro Marim, Castro Marim, Faro area baseline of €1,403,705 (€2,332/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 36/100 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 €1,403,705, adjusted for condition and micro-location, gives a modelled fair value of €1,333,954 (€2,216/m²), a €964,754 (72.3%) gap versus the €369,200 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Castro Marim · 57f51a | Subject | €369,200 | €613 | — | 30 | 53 |
| rua 26 de Janeiro | Active | €145,000 | €1,835 | 199.3% | 42 | 58 |
| Vila Real de Santo António · b32a81 | Active | €450,000 | €2,571 | 319.3% | 64 | 62 |
| rua Juíz Conselheiro Doutor João Bernardino de Sousa Carvalho | Active | €350,000 | €1,483 | 141.8% | 65 | 63 |
| rua Juíz Conselheiro Doutor João Bernardino de Sousa Carvalho | Active | €460,000 | €1,949 | 217.8% | 70 | 62 |
| Median comp | €400,000 | €1,892 | 208.5% | 65 | 62 |
Long-term rental The property is strategically located in rural Eastern Algarve, presenting a long-term rental opportunity that aligns with the seasonal nature of the local economy. However, with a gross yield of 0% and a condition rating of 36/100, this investment may not generate immediate returns. Buy-and-hold As an asset below its fair value at €1,333,954, this property offers potential for appreciation in the long-term buy-and-hold strategy. The relatively lower condition rating indicates that significant improvements may be necessary to enhance equity growth over time. Short-term vacation rental The gap between the listing price and fair value suggests a promising short-term vacation rental potential due to the property's proximity to tourist spots. Yet, consideration of the basic amenities and a subpar neighbourhood rating of 53/100 suggests challenges in attracting consistent rental income. Not ideal for Given the property's condition and yield metrics, it is not well-suited for student housing, luxury market investments, or urban-focused strategies that require high standards and consistent tenant demand.
Economic Vulnerability: With an economic stability score of 40/100, the property is at risk of economic downturns impacting its value and rental income stability.
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