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 130 m², energy rating F. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Feature: The property boasts an intimate patio designed for complete privacy, perfect for outdoor dining and socializing, along with a small relaxation tank for cooling off during hot days.
The valuation. The asking price of €289,000 is significantly below the fair value of €347,400, positioning the property as subvalued by €58,400 (16.8%). This presents an attractive opportunity in the current market. Buy-to-flip angle. Implementing a buy-to-flip strategy could leverage the property's current condition and location, capitalizing on the strong tourism demand for a profitable resale. A targeted aesthetic enhancement may yield a favorable return. Buy-to-let angle. With a projected gross yield of 5.8%, the estimated monthly rental income of €1,397 makes this property an appealing buy-to-let investment, especially given its proximity to popular tourist attractions in Algarve.
Fair value modelled at €347,400 from 6 comparable sales in the area. Asking €289,000 sits €58,400 (16.8%) below — the upside to fair value.
Asking €289,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €243,519 (€1,873/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €243,519, adjusted for condition and micro-location, gives a modelled fair value of €347,400 (€2,672/m²), a €58,400 (16.8%) gap versus the €289,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · e553d6 | Subject | €289,000 | €2,223 | — | 82 | 68 |
| Santa Bárbara de Nexe · 53cdcc | Active | €350,000 | €2,448 | 10.1% | 55 | 66 |
| Santa Bárbara de Nexe · 3a730c | Active | €729,000 | €2,651 | 19.2% | 71 | 56 |
| Santa Bárbara de Nexe · 33bda8 | Active | €980,000 | €2,816 | 26.7% | 67 | 52 |
| Santa Bárbara de Nexe · bf2840 | Active | €825,000 | €2,778 | 25.0% | 75 | 63 |
| Median comp | €777,000 | €2,715 | 22.1% | 69 | 60 |
Long-term rental The property in Santa Bárbara de Nexe offers a solid long-term rental opportunity with a gross yield of 5.8%, supported by its fair value indicating a 16.8% gap. Given the strong tourism influence in the Algarve, a consistent demand for rental properties can be expected in this area. Short-term vacation rental This 2-bed house is well-positioned for short-term vacation rentals, as the local economy thrives on tourism and hospitality services. The current listing price represents a significant value proposition, allowing for increased profitability if marketed effectively. Buy-and-hold Acquiring this property as a buy-and-hold investment is a compelling strategy, particularly as it is below fair value, providing the potential for appreciation over time. The favorable yield and positive location factors within the Algarve suggest long-term growth in value and rental demand. Not ideal for student housing This property does not align well with student housing due to the local economy's reliance on seasonal tourism rather than a stable student population. Consequently, the investment would likely face challenges in maintaining consistent tenant occupancy. Not ideal for luxury market The property’s position in the market does not cater to the luxury segment, which is likely to demand higher-end amenities and locations. As such, targeting this demographic would not yield favorable returns or demand in the present neighborhood context.
Tenant turnover risk: With both economic and tenant stability scores at 65/100, there is a significant risk of high tenant turnover, potentially leading to increased vacancy rates and reduced 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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