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.
7-bedroom, 5-bathroom house of 376 m², energy rating B. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: This villa includes a first-floor balcony with a jacuzzi, providing a luxurious space to enjoy panoramic sea views and sunsets over the Algarve landscape.
The valuation. The asking price of €1,950,000 is just €60,000 above the fair value of €1,890,000, indicating it is fairly priced within the market context. This small premium reflects the property's high-quality amenities and desirable location. Buy-to-flip angle. With a focus on the resale strategy, potential investors could enhance the property’s appeal through minor renovations and marketing, targeting the luxury buyer segment in Algarve. This approach capitalizes on the region's robust demand for upscale properties. Buy-to-let angle. Investors can leverage the estimated monthly rental income of €4,062, yielding a gross yield of 2.5%. The high-quality condition and tourist-driven economy of Santa Bárbara de Nexe make it suitable for both long-term and short-term rentals.
Fair value modelled at €1,890,000 from 5 comparable sales in the area. Asking €1,950,000 sits €60,000 (3.2%) above — overpriced versus fair value.
Asking €1,950,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €1,659,333 (€4,413/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,659,333, adjusted for condition and micro-location, gives a modelled fair value of €1,890,000 (€5,027/m²), a €60,000 (3.2%) gap versus the €1,950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 096f6c | Subject | €1,950,000 | €5,186 | — | 80 | 66 |
| calçada Portuguesa Nota | Active | €1,385,000 | €4,695 | 9.5% | 84 | 61 |
| Santa Bárbara de Nexe · ee87c3 | Active | €1,890,000 | €5,027 | 3.1% | 78 | 64 |
| caminho do Canal | Active | €3,750,000 | €7,239 | 39.6% | 73 | 61 |
| Santa Bárbara de Nexe · 911651 | Active | €1,200,000 | €4,364 | 15.9% | 74 | 68 |
| Median comp | €1,637,500 | €4,861 | 6.3% | 76 | 63 |
Long-term rental The property offers a gross yield of 2.5%, which aligns with the demands of long-term rentals in the region, especially given the average neighborhood quality rating of 66/100. However, the slight 3.2% gap from the fair value suggests that while this strategy is viable, the property is priced reasonably without significant upside. Short-term vacation rental With its spacious 376m² layout and location in the tourist-favored Algarve, the house could attract vacation renters, capitalizing on the seasonal economic activity. Despite these advantages, the property is priced fairly at €1,950,000, indicating that returns may be modest rather than exceptional in the current market. Buy-and-hold Investing in this property for a buy-and-hold strategy may benefit from potential appreciation in an area known for its tourism, yet the fair valuation means there is limited opportunity for immediate growth. The solid condition score of 85/100 adds appeal, but the current purchase price reflects a balanced market position rather than an undervalued asset, suggesting more cautious long-term expectations.
Potential tenant turnover risk With an Economic stability score of 60/100 and a Tenant stability score of 65/100, there is a moderate risk of increased tenant turnover, potentially leading to higher vacancy rates and inconsistent rental income.
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