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 126 m², built in 2025. Located on rua Doutor António de Passos, 64, Vila Real de Santo António parish, Vila Real de Santo António municipality, Faro district. This property features a 18 m² terrace on the third floor, perfect for enjoying panoramic views and outdoor leisure activities in a historic urban setting.
The valuation. The asking price of €550,000 is slightly above the fair value of €527,563, sitting at €22,438 (4.3%) over. However, the property is assessed as fair in terms of valuation. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the improving market demands in Vila Real de Santo António, aiming for enhancements to increase resale value significantly within a short timeframe. Buy-to-let angle. With an estimated gross yield of 4.5% and projected rental income around €2,062 per month, the property is well-positioned for a stable buy-to-let venture in Southern Algarve's thriving tourism sector.
Fair value modelled at €527,563 from 6 comparable sales in the area. Asking €550,000 sits €22,438 (4.3%) above — overpriced versus fair value.
Asking €550,000 versus the rua Doutor António de Passos, 64 area baseline of €411,376 (€3,265/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €411,376, adjusted for condition and micro-location, gives a modelled fair value of €527,563 (€4,187/m²), a €22,438 (4.3%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Doutor António de Passos, 64 | Subject | €550,000 | €4,365 | — | 80 | 65 |
| rua João de Deus, 27 | Active | €380,000 | €3,333 | 23.6% | 75 | 60 |
| praça Marquês de Pombal | Active | €295,000 | €4,214 | 3.5% | 72 | 56 |
| urbanização Urbanizão Monte Fino Monte Gordo | Active | €325,000 | €5,417 | 24.1% | 70 | 60 |
| Monte Gordo · 38b62b | Active | €299,500 | €4,160 | 4.7% | 62 | 67 |
| Median comp | €312,250 | €4,187 | 4.1% | 71 | 60 |
Short-term vacation rental The property’s appeal as a short-term vacation rental is supported by its location in the tourism-centric southern Algarve, though its yield of 4.5% indicates a moderate return potential. However, with a fair value gap of only 4.3%, it may struggle to significantly outperform competing rentals in a highly seasonal market. Buy-and-hold With a fair valuation, this property aligns with a buy-and-hold strategy by offering stable occupancy potential in a tourist region, albeit with limited upside given the minimal fair value gap. The 4.5% gross yield suggests ongoing income, but investors should be cautious of the seasonality of the local job market. Family rental As a family rental, the house reflects a decent condition score of 85/100, making it suitable for long-term tenants, though the neighbourhood quality rating of 65/100 is a concern. The property’s fair valuation indicates a balanced investment, but its proximity to seasonal employment may affect tenant stability. Not ideal for This property is not suitable for student housing due to the seasonal nature of its location, which may not provide consistent demand throughout the academic year. Additionally, the luxury market does not align with this home's valuation and community characteristics, suggesting a risk for investment in that segment. Industrial investment An industrial investment strategy is not appropriate here since the property is situated in a primarily residential and tourist area, lacking the infrastructure or demand for industrial purposes. Therefore, any such investment would be misaligned with the property’s characteristics and market conditions.
Economic vulnerability With an economic stability score of 60/100, there is a significant risk that economic downturns could adversely affect the property's viability and rental demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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