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 country_house of 166 m², energy rating B. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Unique Feature: Originally an ancient cistern, the plunge pool is elegantly designed with travertine stone, merging historical charm with contemporary luxury. Land Potential: The expansive 11,000 m² lot features fruit trees and a small vegetable garden, enhancing the property's serene, nature-connected ambiance.
The valuation. The asking price of €1,400,000 is significantly above the fair value of €833,936, reflecting an overpricing of €566,064 (67.9%). This premium renders the property a less compelling investment. Buy-to-flip angle. A potential resale strategy could capitalize on Algarve's tourist demand, targeting buyers looking for high-end vacation homes, though the current premium would restrict immediate flipping profitability. Buy-to-let angle. With an estimated gross yield of 2.8% (~€3,267/month), the property can be leveraged for long-term rental, appealing to vacationers attracted to the region’s scenic countryside and amenities.
Fair value modelled at €833,936 from 6 comparable sales in the area. Asking €1,400,000 sits €566,064 (67.9%) above — overpriced versus fair value.
Asking €1,400,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €773,604 (€4,660/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 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 €773,604, adjusted for condition and micro-location, gives a modelled fair value of €833,936 (€5,024/m²), a €566,064 (67.9%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 7caa4e | Subject | €1,400,000 | €8,434 | — | 78 | 65 |
| Santa Bárbara de Nexe · 3a73ed | Active | €1,400,000 | €7,778 | 7.8% | 80 | 61 |
| Loulé (São Clemente) · 5e63df | Active | €995,000 | €4,523 | 46.4% | 79 | 64 |
| Santa Bárbara de Nexe · d748c1 | Active | €840,000 | €5,793 | 31.3% | 80 | 62 |
| Loulé (São Clemente) · 3df47a | Active | €895,000 | €5,525 | 34.5% | 75 | 64 |
| Median comp | €945,000 | €5,659 | 32.9% | 80 | 63 |
Short-term vacation rental Given the property’s gross yield of 2.8% in a region with significant tourism, it reflects an uneconomic investment opportunity at its current price of €1,400,000. The 67.9% gap from fair value indicates that despite the Algarve’s appeal, this property is overpriced for the short-term rental market. Long-term rental With a fair value of €833,936, the current listing price suggests that potential rental income would struggle to justify the investment, considering the 2.8% yield. The local amenities and safety standards don’t offset the fact that the property is overpriced, making long-term rental less viable. Buy-and-hold While the Algarve area shows potential for property appreciation, the current price of €1,400,000 is markedly above its fair value of €833,936, limiting any upside for buy-and-hold investors. This overpricing may significantly hinder long-term profitability, rendering the buy-and-hold strategy less attractive in this instance.
Economic Vulnerability With an economic stability score of 60/100, the property is exposed to potential fluctuations and downturns in the local economy, which may impact tenant retention 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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