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, 4-bathroom house of 168 m², energy rating C. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: The property includes a bright, spacious basement with an independent entrance, allowing for versatile use as a self-contained living space or rental potential.
The valuation. The asking price of €475,000 is €45,000 (8.7%) below the fair value of €520,000, indicating that it reflects a fair market assessment of the property. This suggests a stable investment opportunity without the risk of overvaluation.
Fair value modelled at €520,000 from 5 comparable sales in the area. Asking €475,000 sits €45,000 (8.7%) below — the upside to fair value.
Asking €475,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €435,965 (€2,595/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 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 €435,965, adjusted for condition and micro-location, gives a modelled fair value of €520,000 (€3,095/m²), a €45,000 (8.7%) gap versus the €475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 7caa30 | Subject | €475,000 | €2,827 | — | 72 | 60 |
| urbanização Bela Praia | Active | €450,000 | €1,490 | 47.3% | 68 | 64 |
| Vila Nova de Cacela · 19f541 | Active | €455,000 | €3,095 | 9.5% | 70 | 58 |
| rua do Alecrim | Active | €475,000 | €3,598 | 27.3% | 65 | 56 |
| Vila Nova de Cacela · f14ba5 | Active | €850,000 | €2,982 | 5.5% | 76 | 60 |
| Median comp | €465,000 | €3,039 | 7.5% | 69 | 59 |
Short-term vacation rental While the property is positioned in an attractive location near the Algarve coast, its yield of 3.3% suggests that it may not generate substantial returns in the competitive short-term rental market. Given the fair valuation of €475,000 against a fair value of €520,000, investing in this property may not maximize short-term profitability. Buy-and-hold The house's fair valuation reflects stable demand in Vila Nova de Cacela, but the 3.3% yield indicates limited growth potential over time. Investors should be cautious, as the property does not represent a compelling long-term investment given its current pricing relative to fair market value. Long-term rental With a gross yield of 3.3%, this property may struggle to attract tenants seeking value in a long-term rental arrangement, especially in a neighborhood rated only 60/100. The proximity to tourist areas adds appeal, but the fair valuation and limited yield suggest caution for long-term rental strategies. Not ideal for: Student housing, Luxury market, Industrial development.
Potential vacancy risk With both economic and tenant stability scores at 55/100, there is an elevated risk of increased vacancies due to insufficient demand, which could lead to reduced 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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