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, 3-bathroom house of 120 m², built in 1988, energy rating D. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: The property boasts a renovated swimming pool converted from a traditional water reservoir, along with an extensive outdoor barbecue area ideal for entertaining guests.
The valuation. The asking price of €740,000 represents a significant 16.5% premium over the fair value of €635,106, indicating this property is overpriced. Buyers should consider negotiating lower to align closer with market realities.
Fair value modelled at €635,106 from 5 comparable sales in the area. Asking €740,000 sits €104,894 (16.5%) above — overpriced versus fair value.
Asking €740,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €529,527 (€4,413/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 €529,527, adjusted for condition and micro-location, gives a modelled fair value of €635,106 (€5,293/m²), a €104,894 (16.5%) gap versus the €740,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 78831f | Subject | €740,000 | €6,167 | — | 78 | 61 |
| Santa Bárbara de Nexe · 3a70f9 | Active | €1,150,000 | €6,497 | 5.4% | 85 | 62 |
| Santa Bárbara de Nexe · 4b99cc | Active | €995,000 | €5,293 | 14.2% | 75 | 69 |
| caminho de Benatrite | Active | €1,499,000 | €8,517 | 38.1% | 80 | 61 |
| estrada Joaquim Rosa Pinto | Active | €1,980,000 | €5,077 | 17.7% | 79 | 60 |
| Median comp | €1,324,500 | €5,895 | 4.4% | 80 | 62 |
Short-term vacation rental Given the property’s location in a tourism-dependent area of Algarve, its potential as a short-term vacation rental is limited by its 16.5% gap above fair value. With a gross yield of only 1.4%, the profitability does not justify the investment, making it less attractive in the current market. Long-term rental This property’s potential for long-term rental is hampered by its overpriced listing of €740,000 compared to its fair value of €635,106. The less than ideal yield of 1.4% indicates a suboptimal return on investment for landlords in an already competitive rental market. Buy-and-hold As a buy-and-hold investment strategy, acquiring this property would be unwise due to its 16.5% premium over fair value and an unimpressive yield of 1.4%. The neighborhood rating of 61/100 suggests challenges in tenant quality and market stability, which may hinder long-term capital appreciation.
Tenant Default Risk With a tenant stability score of 65/100, there is a moderate risk that tenants may default on lease agreements, impacting 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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