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, 2-bathroom villa of 214 m², energy rating B. Located on autoestrada EM516, Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Noteworthy Features: This villa boasts a spacious outdoor terrace with a built-in barbecue, perfect for entertaining, and is surrounded by peaceful orange groves, enhancing the tranquil lifestyle.
The valuation. The asking price of €599,000 is considerably lower than the fair value of €740,917, representing a discount of €141,917 (19.2%). This property is subvalued, presenting a compelling opportunity for investors. Buy-to-flip angle. With strategic renovations, the property can be resold at a higher price, leveraging its attractive condition and quality finishes to appeal to buyers seeking modern amenities. Buy-to-let angle. The property offers potential for a gross yield of 4%, with estimated rental income of €1,997 per month, making it an attractive option for long-term investment in the growing Algarve rental market.
Fair value modelled at €740,917 from 6 comparable sales in the area. Asking €599,000 sits €141,917 (19.2%) below — the upside to fair value.
Asking €599,000 versus the autoestrada EM516 area baseline of €570,607 (€2,666/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 €570,607, adjusted for condition and micro-location, gives a modelled fair value of €740,917 (€3,462/m²), a €141,917 (19.2%) gap versus the €599,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| autoestrada EM516 | Subject | €599,000 | €2,799 | — | 72 | 65 |
| praça da República | Active | €799,000 | €4,296 | 53.5% | 75 | 70 |
| rua Otilio Dourado | Active | €575,000 | €2,396 | 14.4% | 80 | 57 |
| Luz de Tavira e Santo Estévão · ba57fe | Active | €575,000 | €2,500 | 10.7% | 72 | 52 |
| Luz de Tavira e Santo Estévão · 389d15 | Active | €1,499,000 | €3,578 | 27.8% | 74 | 58 |
| Median comp | €687,000 | €3,039 | 8.6% | 75 | 58 |
Short-term vacation rental The property is well-positioned in the Algarve, an area renowned for its strong tourism and expatriate communities, making it ideal for short-term vacation rentals. Additionally, with a fair value gap of 19.2%, this investment presents a promising opportunity compared to its listing price of €599,000. Long-term rental Given the stable demand from both tourists and retirees, this villa is poised for reliable long-term rental income in a desirable neighborhood. The gross yield of 4% combined with the fair value assessment indicates that the property could generate strong cash flows over time, despite its current listing price. Buy-and-hold Investing in this villa as a buy-and-hold asset allows for capital appreciation in a sought-after region, benefiting from ongoing demand and lower crime rates. The fair value is significantly higher than the listing price, suggesting that holding this property could yield substantial returns over the long term.
Economic Vulnerability The property faces a risk due to an economic stability score of 60/100, indicating potential volatility in the local market that could affect tenant demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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