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.
1-bedroom, 1-bathroom house of 52 m². Located Sagres parish, Vila do Bispo municipality, Faro district. Noteworthy Features: The property includes Velux windows with remote control for enhanced lighting and ventilation, as well as a charming lemon tree in the outdoor area.
The valuation. The asking price of €420,000 is significantly above fair value, with a difference of €193,913 (85.8%). This property is considered overpriced, given its fair market value of €226,087. Buy-to-flip angle. The buy-and-flip strategy would be challenging due to the excessive asking price of €420,000 compared to resale potential based on neighborhood metrics. The aim would be to invest in renovations and resell at a higher price, yet current conditions don't support this. Buy-to-let angle. A buy-to-let strategy is currently unfeasible as it shows a gross yield of 0% per month, indicating no rental income. With the area's reliance on tourism, an adjustment in property pricing would be necessary to attract renters.
Fair value modelled at €226,087 from 5 comparable sales in the area. Asking €420,000 sits €193,913 (85.8%) above — overpriced versus fair value.
Asking €420,000 versus the Sagres, Vila do Bispo, Faro area baseline of €188,547 (€3,626/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €188,547, adjusted for condition and micro-location, gives a modelled fair value of €226,087 (€4,348/m²), a €193,913 (85.8%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Sagres · 097099 | Subject | €420,000 | €8,077 | — | 75 | 70 |
| Sagres · b7c16f | Active | €700,000 | €10,448 | 29.4% | — | 73 |
| Sagres · 8003a7 | Active | €800,000 | €4,348 | 46.2% | — | 71 |
| Sagres · 133b48 | Active | €1,375,000 | €7,514 | 7.0% | 72 | 82 |
| rua do Pinhal | Active | €575,000 | €2,847 | 64.8% | 70 | 71 |
| Median comp | €750,000 | €5,931 | 26.6% | 71 | 72 |
Short-term vacation rental The property's listing price of €420,000 is significantly above the fair value of €226,087, which indicates it may not meet the return expectations for short-term vacation rentals. With a gross yield of 0%, the investment does not present an attractive opportunity for short-term income generation. Buy-and-hold At a gap of 85.8% from fair value, purchasing this property as a long-term hold is ill-advised given its overpriced nature. With limited potential for appreciation due to the €420,000 asking price and a gross yield of 0%, this strategy does not offer a viable path for capital gain. Family rental Despite the neighborhood rating of 70/100, the €420,000 price tag is steep relative to the fair value, making it a poor choice for a family rental property. The zero gross yield further underscores the lack of cash flow potential, revealing significant risk for families seeking stable living arrangements.
Economic Vulnerability The property faces economic risk due to its average economic stability score of 65/100, indicating potential fluctuations in local market conditions that could affect rental income. Tenant Instability The tenant stability score of 65/100 suggests a moderate risk of tenant turnover, which could lead to increased vacancy rates and reduced cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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