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 villa of 340 m², built in 1996, energy rating C. Located Santa Catarina da Fonte do Bispo parish, Tavira municipality, Faro district. Noteworthy Features: This villa includes a solar energy system and a rainwater recovery system that fills two 40,000-liter tanks, enhancing its sustainability and efficiency.
The valuation. The asking price of €995,000 is positioned slightly above the fair value of €963,333, indicating a discrepancy of €31,667 (3.3%). This property is valued fairly within the current market context.
Fair value modelled at €963,333 from 5 comparable sales in the area. Asking €995,000 sits €31,667 (3.3%) above — overpriced versus fair value.
Asking €995,000 versus the Santa Catarina da Fonte do Bispo, Tavira, Faro area baseline of €753,242 (€2,215/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €753,242, adjusted for condition and micro-location, gives a modelled fair value of €963,333 (€2,833/m²), a €31,667 (3.3%) gap versus the €995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Catarina da Fonte do Bispo · 2d8296 | Subject | €995,000 | €2,926 | — | 80 | 50 |
| Santa Catarina da Fonte do Bispo · 82c6ff | Active | €985,000 | €3,316 | 13.3% | 76 | 64 |
| rua de Hortas | Active | €850,000 | €2,833 | 3.2% | 72 | 59 |
| rua de Hortas | Active | €850,000 | €2,833 | 3.2% | 70 | 64 |
| largo Nossa Senhora das Dores | Active | €1,290,000 | €2,745 | 6.2% | 78 | 63 |
| Median comp | €917,500 | €2,833 | 3.2% | 74 | 64 |
Short-term vacation rental Given the strong reliance on tourism in the Algarve, this 4-bed villa in Santa Catarina da Fonte do Bispo could serve as a seasonal vacation rental, but the zero gross yield indicates a lack of immediate cash flow. The property is fairly priced with a 3.3% gap to fair value, which limits potential returns for short-term leasing in an area where competition is high. Long-term rental While this property is suitable for long-term rental, the neighborhood's rating of 50/100 suggests a limited tenant quality and amenity access, which could impact occupancy rates. The fair valuation implies the potential for stable rental income over time; however, investors should be cautious of the local market's economic dependency on tourism. Student housing This property is not ideal for student housing due to the neighborhood characteristics and the overall rating, indicating limited appeal for the student demographic. The property’s fair price does not compensate for the lack of nearby educational institutions that typically boost demand in this sector. Luxury market The villa does not fit the luxury market due to its modest neighborhood rating and average condition, which could deter high-end clientele. Moreover, being fairly priced means it lacks the exclusivity or value enhancements that affluent buyers typically seek in a luxury vacation home.
High Vacancy Risk With an Economic Stability score of 40/100 and a Tenant Stability score of 50/100, there is a significant risk of high vacancy rates, which could lead to inconsistent rental income and higher turnover costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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