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 67 m². Located on rua da Palmeira, Budens parish, Vila do Bispo municipality, Faro district. Noteworthy Features: This property includes a converted external storage space with a large barbecue area, enhancing its appeal for entertainment and outdoor living in a traditional setting.
The valuation. The asking price of €300,000 sits €16,232 (5.7%) above the fair value of €283,768, indicating a balanced market position for this property. This reflects a fair valuation, suggesting potential for investment viability.
Fair value modelled at €283,768 from 6 comparable sales in the area. Asking €300,000 sits €16,232 (5.7%) above — overpriced versus fair value.
Asking €300,000 versus the rua da Palmeira area baseline of €243,006 (€3,627/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 is below the parish average, reducing 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 €243,006, adjusted for condition and micro-location, gives a modelled fair value of €283,768 (€4,235/m²), a €16,232 (5.7%) gap versus the €300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Palmeira | Subject | €300,000 | €4,478 | — | 68 | 68 |
| Vila do Bispo e Raposeira · b328e9 | Active | €290,000 | €5,000 | 11.7% | 75 | 74 |
| Budens · 3a7299 | Active | €355,000 | €4,671 | 4.3% | 69 | 71 |
| Budens · da4624 | Active | €495,000 | €3,000 | 33.0% | 72 | 72 |
| Budens · f36646 | Active | €535,000 | €4,315 | 3.6% | 80 | 72 |
| Median comp | €425,000 | €4,493 | 0.3% | 74 | 72 |
Long-term rental The property offers a gross yield of 4.1%, which is reasonable for the market conditions in Budens. Given the local tourism-driven economy, it can generate stable rental income, matching the fair valuation of €300,000. Short-term vacation rental With the location being a popular Algarve destination, this property can cater to the short-term rental market effectively. However, the fair value designation suggests that while it may generate income, the pricing is aligned with market expectations, indicating a cautious investment approach. Buy-and-hold Owning this property as part of a buy-and-hold strategy could be advantageous due to its consistent appeal in the Algarve market. Nevertheless, with the property priced fairly at €300,000, the potential for immediate capital appreciation could be limited, calling for a longer investment horizon to see returns. Not ideal for: The current property is not suited for student housing or the luxury market, as both sectors may not align with the neighborhood's offerings. Additionally, industrial investments are not favorable in a primarily tourism-driven economy.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of downturn, which may affect tenant retention and rental income.**
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
