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 125 m², energy rating D. Located Barão de São Miguel parish, Vila do Bispo municipality, Faro district. The property features a cozy loft aesthetic with high ceilings and exposed wooden beams, while also providing versatility with an additional 18 m² mezzanine space.
The valuation. The asking price of €398,500 is notably below the fair value of €482,134, positioning the property as subvalued by €83,634 (17.3%). This creates a compelling opportunity for investment in a desirable area.
Fair value modelled at €482,134 from 6 comparable sales in the area. Asking €398,500 sits €83,634 (17.3%) below — the upside to fair value.
Asking €398,500 versus the Barão de São Miguel, Vila do Bispo, Faro area baseline of €424,188 (€3,394/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €424,188, adjusted for condition and micro-location, gives a modelled fair value of €482,134 (€3,857/m²), a €83,634 (17.3%) gap versus the €398,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Barão de São Miguel · c121e4 | Subject | €398,500 | €3,188 | — | 75 | 75 |
| rua das Bicas | Active | €299,000 | €3,646 | 14.4% | 72 | 61 |
| Budens · 4b92a5 | Active | €625,000 | €4,630 | 45.2% | 79 | 73 |
| Bensafrim e Barão de São João · 4a4340 | Active | €720,000 | €4,068 | 27.6% | 73 | 73 |
| Luz · 829012 | Active | €545,000 | €3,633 | 14.0% | 72 | 67 |
| Median comp | €585,000 | €3,857 | 21.0% | 73 | 70 |
Short-term vacation rental The property's appealing location in the Algarve, a tourist hotspot, positions it well for short-term vacation rentals, tapping into a steady demand from travelers. With a gross yield of 4.8% and a gap of 17.3% below fair value, this investment strategy is likely to yield strong returns in the popular rental market. Long-term rental In the current housing market, with a solid condition rating of 77/100 and a neighborhood score of 75/100, this 2-bed house is well-suited for long-term rental propositions. The fair value gap indicates a significant opportunity for consistent rental income amid an in-demand area driven by tourism and expat residents. Buy-and-hold Investing in this property for a buy-and-hold strategy is enhanced by its subvalorizada status, offering potential appreciation over time in a thriving market. The combination of a strong rental yield and favorable neighborhood ratings supports a long-term investment outlook that aligns with the growing economic activity in Algarve.
Economic Vulnerability The economic stability score of 65/100 indicates a potential weakness in local economic conditions that could impact rental income and overall property value.
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