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, 3-bathroom house of 200 m², built in 1910, energy rating B. Located on autoestrada EM520-1, 338, Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: The villa boasts a beautifully integrated independent suite adjacent to the garden, ideal for guest accommodation or potential extra income.
The valuation. The asking price of €920,000 is significantly below the fair value of €1,027,089, representing a potential discount of €107,089 (10.4%). This positioning indicates an attractive buying opportunity for discerning investors. Buy-to-flip angle. With strategic renovations, the property can be flipped at a higher price due to its underpriced listing and high-quality materials, potentially yielding substantial returns in the competitive Algarve market. Buy-to-let angle. The property offers a gross yield of 3.8%, estimated at €2,913 per month, making it a viable option for long-term rental or vacation rentals catering to the region's tourist influx.
Fair value modelled at €1,027,089 from 6 comparable sales in the area. Asking €920,000 sits €107,089 (10.4%) below — the upside to fair value.
Asking €920,000 versus the autoestrada EM520-1, 338 area baseline of €937,791 (€4,689/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €937,791, adjusted for condition and micro-location, gives a modelled fair value of €1,027,089 (€5,135/m²), a €107,089 (10.4%) gap versus the €920,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| autoestrada EM520-1, 338 | Subject | €920,000 | €4,600 | — | 75 | 62 |
| rua Dom Afonso Henriques | Active | €1,695,000 | €4,788 | 4.1% | 80 | 65 |
| estrada de Loulé, 216A | Active | €1,290,000 | €4,418 | 4.0% | 82 | 67 |
| Almancil · 6fbc09 | Active | €2,400,000 | €7,164 | 55.7% | 82 | 73 |
| Loulé (São Clemente) · 3df47a | Active | €895,000 | €5,525 | 20.1% | 75 | 64 |
| Median comp | €1,492,500 | €5,157 | 12.1% | 81 | 66 |
Short-term vacation rental This property, priced at €920,000, is currently 10.4% below its fair value of €1,027,089, making it an attractive option for short-term vacation rentals given its appeal in the tourist-heavy Algarve region. With a gross yield of 3.8% and a quality condition rating of 81/100, it is well-positioned to attract seasonal visitors seeking a comfortable stay. Long-term rental Investing in this property for long-term rental can yield a stable income stream, bolstered by the region's seasonal tourism that drives year-round housing demand. The property is well-maintained and rated at 81/100, presenting a reliable option for families or professionals looking to settle in the area. Family rental This property offers potential as a family rental, with a reasonable gross yield of 3.8% and being located in the popular Algarve region which benefits from seasonal tourism. Despite the neighbourhood rating of 62/100, the appealing condition of the house at 81/100 may attract families appreciative of the home's quality and space. Not ideal for student housing This property is not suitable for student housing given the lower neighbourhood rating of 62/100, which may not meet the needs of the student demographic. Additionally, the average gross yield of 3.8% may not provide sufficient returns to justify the investment in a student rental market. Not ideal for luxury market The property is not ideal for the luxury market, as it has a decent but not exceptional condition rating of 81/100 compounded by a neighbourhood score of 62/100. While it has appealing features, the overall offerings may not attract high-end buyers or renters looking for luxury experiences in a more upscale locale.
Economic volatility risk The property faces potential instability due to an economic stability score of 55/100, indicating a risk of fluctuating market conditions that could affect tenant demand and rental income.
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