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, 3-bathroom house of 276 m², built in 2006, energy rating E. Located on estrada de Loulé, Santa Bárbara de Nexe parish, Faro municipality, Faro district. The property boasts a historic facade that has been photographed numerous times, highlighting its significance as a landmark in the area, while the expansive outdoor space allows for potential future development.
The valuation. The asking price of €765,000 is slightly below the fair value of €787,566, indicating that the property is priced fairly, with a difference of €22,566 (2.9%). Buy-to-flip angle. A resale strategy could capitalize on the property's quality materials and mixed neighbourhood appeal, with potential for significant profit in a growing market. Buy-to-let angle. With an estimated gross yield of 5.5% and projected rental income of €3,506 per month, this property offers solid cash flow opportunities in the tourist-friendly Algarve region.
Fair value modelled at €787,566 from 6 comparable sales in the area. Asking €765,000 sits €22,566 (2.9%) below — the upside to fair value.
Asking €765,000 versus the estrada de Loulé area baseline of €592,632 (€2,147/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €592,632, adjusted for condition and micro-location, gives a modelled fair value of €787,566 (€2,854/m²), a €22,566 (2.9%) gap versus the €765,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de Loulé | Subject | €765,000 | €2,772 | — | 72 | 60 |
| Santa Bárbara de Nexe · 3a730c | Active | €729,000 | €2,651 | 4.4% | 71 | 56 |
| rua de Loule S / N | Active | €850,000 | €2,237 | 19.3% | 70 | 74 |
| Santa Bárbara de Nexe · 8317a3 | Active | €850,000 | €2,237 | 19.3% | 75 | 63 |
| Santa Bárbara de Nexe · 33bda8 | Active | €980,000 | €2,816 | 1.6% | 67 | 52 |
| Median comp | €850,000 | €2,444 | 11.8% | 71 | 60 |
Short-term vacation rental The property is fairly priced at €765,000 with a gross yield of 5.5%, making it a reasonable option for short-term rentals in the tourism-driven Algarve. Given the area's focus on tourism, it could generate steady income, although the neighborhood score of 60/100 indicates there could be challenges with tenant quality. Buy-and-hold As a buy-and-hold investment, the property at €765,000 aligns closely with its fair value of €787,566, suggesting stable long-term potential in a tourism-centric area. A gross yield of 5.5% offers an attractive return relative to the risks involved, particularly given the moderate condition rating of 76/100. Value-add renovation While priced fairly, the €765,000 listing may offer limited upside for a value-add renovation strategy due to its close alignment with fair value and a condition score of 76/100. Any renovations would need to enhance tenant appeal without expecting significant price appreciation in an already balanced market. Not ideal for student housing This property is not suited for student housing as it is fairly priced and located in a tourist-centric area that doesn't cater to long-term student needs. The neighborhood score of 60/100 does not provide the necessary amenities for attracting students. Not ideal for luxury market Entering the luxury market with this property is not feasible since it is fairly priced and falls short of premium property standards often sought after in high-end investments. The decent condition of 76/100 is not enough to distinguish it in a competitive luxury segment where unique features and high value appreciation are critical. Not ideal for industrial investment This property is clearly misaligned with industrial investment goals, evidenced by its fair pricing structure and the lack of relevant economic factors in a tourism-focused context. As industrial demand typically requires strategic locations and economic indicators, this property does not fit that profile.
Potential Rent Default Risk Tenants may be financially unstable given the low tenant stability score of 60/100, increasing the likelihood of rent defaults and vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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