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 house of 195 m², built in 1995, energy rating D. Located Algoz e Tunes parish, Silves municipality, Faro district. This property includes beautiful porches that enhance outdoor living and offer scenic views of the surrounding vineyards, creating a serene environment.
The valuation. The asking price of €825,000 is significantly below the fair value of €1,329,281, representing a discount of €504,281 (37.9%). This property is clearly underpriced for the market conditions. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the undervalued nature of this home, aiming for a quick resale at a price closer to its fair value. Renovations to modernize dated fixtures could further enhance profit margins. Buy-to-let angle. The estimated rental income of €1,994 per month results in a gross yield of 2.9%, making it an attractive buy-to-let option in a desirable tourist area. The strong demand for rentals in Algarve may ensure consistent occupancy rates.
Fair value modelled at €1,329,281 from 6 comparable sales in the area. Asking €825,000 sits €504,281 (37.9%) below — the upside to fair value.
Asking €825,000 versus the Algoz e Tunes, Silves, Faro area baseline of €1,323,429 (€6,787/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €1,323,429, adjusted for condition and micro-location, gives a modelled fair value of €1,329,281 (€6,817/m²), a €504,281 (37.9%) gap versus the €825,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Algoz e Tunes · 53ccfd | Subject | €825,000 | €4,231 | — | 72 | 66 |
| rua de Taipas, 5 | Active | €500,000 | €4,717 | 11.5% | 74 | 63 |
| Algoz e Tunes · 467f4d | Active | €495,000 | €3,960 | 6.4% | 75 | 65 |
| Algoz e Tunes · 937402 | Active | €500,000 | €3,247 | 23.3% | 79 | 74 |
| Algoz e Tunes · a80bf3 | Active | €535,000 | €9,068 | 114.3% | 80 | 70 |
| Median comp | €500,000 | €4,339 | 2.5% | 77 | 68 |
Long-term rental This property presents a favorable long-term rental opportunity, as its fair value at €1,329,281 indicates a significant gap compared to the listing price of €825,000. With a solid gross yield of 2.9%, it fits well in a thriving neighbourhood that benefits from Algarve's robust tourism-driven economy. Short-term vacation rental As a short-term vacation rental, this house offers exceptional potential due to the 37.9% gap between its asking price and fair market value, making it an attractive choice for investors. Given the area's popularity as a tourist destination, this property can capitalize on high occupancy rates, generating a promising return on investment. Buy-and-hold Investors considering a buy-and-hold strategy will find this property appealing, as its fair valuation suggests long-term appreciation potential given the strong real estate demand in the Algarve. Additionally, the current listing price makes it a sensible acquisition within a market that benefits from ongoing tourism and local economic growth.
Tenant turnover risk The tenant stability score of 70/100 indicates a moderate risk of turnover, which could affect rental income and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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