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.
3-bedroom, 2-bathroom house of 125 m², energy rating D. Located Castro Marim parish, Castro Marim municipality, Faro district. With direct beach access via private stairs, this villa uniquely offers a rare balance of coastal living and secluded privacy amidst natural surroundings.
The valuation. The asking price of €1,800,000 is significantly above its fair value of €609,601, representing a staggering 195.3% premium. This property is clearly overpriced given the current market conditions.
Fair value modelled at €609,601 from 6 comparable sales in the area. Asking €1,800,000 sits €1,190,399 (195.3%) above — overpriced versus fair value.
Asking €1,800,000 versus the Castro Marim, Castro Marim, Faro area baseline of €521,696 (€4,174/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €521,696, adjusted for condition and micro-location, gives a modelled fair value of €609,601 (€4,877/m²), a €1,190,399 (195.3%) gap versus the €1,800,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Castro Marim · 2ce1d5 | Subject | €1,800,000 | €14,400 | — | 82 | 65 |
| Monte Gordo · 4a446f | Active | €565,000 | €5,765 | 60.0% | 66 | 57 |
| Monte Gordo · 096ffc | Active | €550,000 | €4,661 | 67.6% | 75 | 60 |
| Vila Nova de Cacela · 15e07a | Active | €550,000 | €5,093 | 64.6% | 75 | 55 |
| urbanização Urbanizão Monte Fino Monte Gordo | Active | €325,000 | €5,417 | 62.4% | 70 | 60 |
| Median comp | €550,000 | €5,255 | 63.5% | 73 | 59 |
Long-term rental The property's high listing price of €1,800,000 significantly overshoots its fair value of €609,601, indicating that it is overpriced for the long-term rental market. With a gross yield of 0%, this asset does not present a viable investment option for generating sustained rental income. Short-term vacation rental Given the vast gap of 195.3% between the listing price and fair value, this property is overpriced for the short-term vacation rental strategy. The attractive Algarve location may attract tourists, but at this price point, profitability is unlikely. Buy-and-hold While the property is located in a desirable area for retirees and tourists, its current listing exceeds fair value by a significant margin, classifying it as overpriced for a buy-and-hold strategy. The expected appreciation or rental income does not justify the initial investment outlay at €1,800,000. Not ideal for student housing or the luxury market due to its overpriced status, high costs could deter potential tenant demographics that are typically more price-sensitive. The combination of the property's valuation and its neighborhood quality suggests it will struggle to attract suitable renters in these segments.
Economic vulnerability The economic stability score of 55/100 indicates a significant risk of downturns affecting rental income and property value.
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