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 571 m², energy rating C. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: The villa includes a standalone ruin, allowing potential buyers to create a custom guesthouse, studio, or lounge, complementing its already exceptional living spaces.
The valuation. The asking price of €2,650,000 sits €420,725 (13.7%) below the fair value of €3,070,725, indicating a price aligned with market expectations. This suggests that the property is fairly priced considering current market conditions.
Fair value modelled at €3,070,725 from 6 comparable sales in the area. Asking €2,650,000 sits €420,725 (13.7%) below — the upside to fair value.
Asking €2,650,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €2,588,829 (€4,534/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €2,588,829, adjusted for condition and micro-location, gives a modelled fair value of €3,070,725 (€5,378/m²), a €420,725 (13.7%) gap versus the €2,650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · 9af715 | Subject | €2,650,000 | €4,641 | — | 85 | 70 |
| Santa Bárbara de Nexe · cc9b83 | Active | €1,300,000 | €6,132 | 32.1% | — | 61 |
| Santa Bárbara de Nexe · cc9bde | Active | €1,300,000 | €6,132 | 32.1% | — | 57 |
| rua de Loule | Active | €890,000 | €3,956 | 14.8% | — | 62 |
| Santa Bárbara de Nexe · a80c04 | Active | €1,300,000 | €6,132 | 32.1% | — | 59 |
| Median comp | €1,300,000 | €6,132 | 32.1% | — | 60 |
Short-term vacation rental The property is strategically located in the Algarve, which benefits from strong tourism-driven economic activity, creating potential demand for short-term vacation rentals. However, with a gross yield of only 3%, the return may not justify the upfront investment despite the fair valuation. Long-term rental Given the villa's fair valuation and notable condition score of 81/100, it presents a reasonable option for long-term rental in a neighborhood characterized by low crime rates and stable economic activity. The current yield of 3% suggests that while the investment may yield steady income, it may not meet more aggressive return expectations compared to other investment avenues. Buy-and-hold As a buy-and-hold strategy, this property offers the advantage of a solid condition and the potential for appreciation in an attractive tourist region. Nonetheless, with a fair valuation reflecting just a 13.7% gap from fair value, investors should remain cautious regarding long-term capital growth prospects relative to other options available in the market.
Market Volatility Risk: With an economic stability score of 65/100, there is a significant risk of fluctuating market conditions that could negatively impact rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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