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.
2-bedroom, 2-bathroom house of 93 m², built in 2005, energy rating C. Located Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: Enjoy year-round outdoor living with a spacious terrace designed for entertaining, complete with a built-in masonry barbecue and easy access for post-beach refreshment. Location Highlights: The villa's proximity to the quiet beach creates a serene retreat, perfect for relaxation and leisure.
The valuation. The asking price of €470,000 is significantly above the fair value of €375,434, resulting in an overvaluation of €94,566 (25.2%). This property is overpriced compared to market expectations.
Fair value modelled at €375,434 from 6 comparable sales in the area. Asking €470,000 sits €94,566 (25.2%) above — overpriced versus fair value.
Asking €470,000 versus the Vila Nova de Cacela, Vila Real de Santo António, Faro area baseline of €371,531 (€3,995/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 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 €371,531, adjusted for condition and micro-location, gives a modelled fair value of €375,434 (€4,037/m²), a €94,566 (25.2%) gap versus the €470,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Vila Nova de Cacela · 76b141 | Subject | €470,000 | €5,054 | — | 68 | 62 |
| Vila Nova de Cacela · 0901ef | Active | €450,000 | €5,233 | 3.5% | 70 | 68 |
| Vila Nova de Cacela · 001578 | Active | €360,000 | €3,711 | 26.6% | 68 | 63 |
| rua D. Pedro IV, 5A | Active | €349,000 | €4,363 | 13.7% | 75 | 60 |
| rua do Alecrim | Active | €475,000 | €3,598 | 28.8% | 68 | 49 |
| Median comp | €405,000 | €4,037 | 20.1% | 69 | 62 |
Long-term rental The property is overpriced by 25.2%, making it less attractive for long-term rental investors seeking favorable returns. With a gross yield of only 2.4%, potential cash flow from this investment may not justify the entry price. Short-term vacation rental Given its 25.2% premium over fair value, this property may struggle to achieve a profitable return in the competitive short-term vacation rental market. Although tourism is robust in the Algarve region, the yield of 2.4% indicates limited profitability for this strategy. Family rental The significant gap from fair value means this property does not present a compelling opportunity for family rental investments. The area's overall conditions and the low gross yield of 2.4% further highlight the risks associated with this overpriced asset.
Economic Vulnerability The property has an economic stability score of 55/100, indicating potential fluctuations in market conditions that could affect tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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