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.
4-bedroom, 4-bathroom country_house of 130 m², built in 1994, energy rating B. Located Luz de Tavira e Santo Estévão parish, Tavira municipality, Faro district. Key Features: This property boasts a serene atmosphere enhanced by lush Mediterranean gardens, mature trees, and an integrated decorative pond with fish and fountain, promoting a harmonious connection with nature.
The valuation. The asking price of €1,450,000 significantly exceeds the fair value of €558,441, representing an overvaluation of €891,559 (159.7%). This property is currently overpriced in the market. Buy-to-flip angle. The buy-to-flip strategy appears unviable due to the high asking price, which limits potential profit margins upon resale. Given the extensive overvaluation, returns from a quick flip would be significantly compromised. Buy-to-let angle. The anticipated gross yield of 1.9% and an estimated rental income of €2,296 per month makes the buy-to-let approach less appealing. Rental income may be impacted by seasonality, especially in a rural tourist area.
Fair value modelled at €558,441 from 5 comparable sales in the area. Asking €1,450,000 sits €891,559 (159.7%) above — overpriced versus fair value.
Asking €1,450,000 versus the Luz de Tavira e Santo Estévão, Tavira, Faro area baseline of €437,201 (€3,363/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €437,201, adjusted for condition and micro-location, gives a modelled fair value of €558,441 (€4,296/m²), a €891,559 (159.7%) gap versus the €1,450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Luz de Tavira e Santo Estévão · a0cc54 | Subject | €1,450,000 | €11,154 | — | 75 | 61 |
| Luz de Tavira e Santo Estévão · be9121 | Active | €1,850,000 | €7,839 | 29.7% | 85 | 60 |
| praça da República | Active | €799,000 | €4,035 | 63.8% | 90 | 64 |
| Luz de Tavira e Santo Estévão · 9116de | Active | €6,000,000 | €15,385 | 37.9% | 78 | 56 |
| alameda In | Active | €1,399,000 | €3,347 | 70.0% | 75 | 63 |
| Median comp | €1,624,500 | €5,937 | 46.8% | 82 | 62 |
Long-term rental While the property in Luz de Tavira e Santo Estévão could provide a long-term rental opportunity, the gross yield of 1.9% suggests that the investment is unlikely to generate satisfactory returns relative to its €1,450,000 listing price. Furthermore, the seasonal nature of tourism in Algarve may lead to fluctuating tenant demand and varied rental yields. Short-term vacation rental Despite the allure of utilizing the property as a short-term vacation rental, the substantial 159.7% gap from its fair value of €558,441 indicates the asking price is not justified in the current market. Additionally, with a neighborhood rating of 61/100, there may be challenges in attracting consistent short-term tenants willing to pay premium rates. Buy-and-hold The buy-and-hold strategy appears less compelling for this property due to the significant overpricing relative to its fair value, making it difficult to achieve long-term capital appreciation. An average condition score of 79/100 may not be sufficient to offset the risks of holding an overpriced asset in a location that faces seasonal fluctuations in demand for housing.
Economic Volatility Risk The economic stability score of 50/100 indicates potential vulnerability to market fluctuations, which could impact rent and property value.
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