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 house of 253 m², energy rating B. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. The property features extensive outdoor amenities, including a tennis court, football field, basketball court, and an American-style barn, enhancing the recreational experience in a serene environment.
The valuation. The asking price of €3,500,000 is significantly higher than its fair value of €1,203,816, presenting a discrepancy of €2,296,184 (190.7%). This property is overpriced. Buy-to-flip angle. Given the high asking price, a buy-and-flip strategy may not yield profitable returns without significant market conditions changing. A sharp increase in property value would be required for any potential profit. Buy-to-let angle. The estimated rental income of €3,500/month results in a gross yield of just 1.2%, indicating a low return on investment. This makes the property less attractive for long-term rental strategies, especially in a mixed neighborhood.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 0c063e | Subject | €3,500,000 | €13,834 | — | — | 65 |
| Santa Bárbara de Nexe · 4d449e | Active | €1,250,000 | €2,834 | 79.5% | — | 67 |
| Santa Bárbara de Nexe · 28b859 | Active | €1,100,000 | €4,247 | 69.3% | 68 | 61 |
| Santa Bárbara de Nexe · 8316b8 | Active | €1,795,000 | €5,983 | 56.7% | — | 72 |
| Santa Bárbara de Nexe · 023cb3 | Active | €1,370,000 | €5,269 | 61.9% | — | 68 |
| Median comp | €1,310,000 | €4,758 | 65.6% | 68 | 68 |
Short-term vacation rental Due to the property being overpriced at €3,500,000 compared to a fair value of €1,203,816, the expected gross yield of 1.2% would likely not attract investors in the short-term vacation rental market. The influence of tourism in the area does not compensate for the inflated price, making this strategy less viable. Long-term rental With an excessive asking price of €3,500,000 and a fair value significantly lower at €1,203,816, the long-term rental potential is diminished by the resulting yield of only 1.2%. The property’s overpriced status could lead to challenges in securing long-term tenants who would expect more value for their rental payments. Buy-and-hold Investing in a buy-and-hold strategy is unattractive given this property’s listing price of €3,500,000, far exceeding its fair valuation of €1,203,816 and yielding just 1.2%. Such a high acquisition cost undermines the potential benefits of capital appreciation and rental income over time, rendering this approach less appealing to investors.
Economic Volatility Risk The economic stability score of 55/100 suggests potential vulnerability to market fluctuations, which could impact overall investment returns adversely.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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