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, 3-bathroom house of 220 m², energy rating C. Located Castro Marim parish, Castro Marim municipality, Faro district. Noteworthy Features: The property boasts an advanced electric pergola with automatic retraction and a specially designed swimming pool cover that enhances temperature regulation naturally. Overview: This villa is a blend of luxury and practicality, ideal for discerning buyers.
The valuation. The asking price of €620,000 sits below the fair value of €749,752, making the property subvalorizada by €129,752 (17.3%). This price points to a favorable opportunity for savvy investors looking for value. Buy-to-flip angle. Given the condition rating of 77/100, a buy-to-flip angle may involve making strategic enhancements to the outdoor spaces and interior to increase appeal and resale value, potentially targeting a market price significantly above the current asking. Buy-to-let angle. With an estimated rental income of €2,015 per month, the buy-to-let strategy could yield a gross yield of 3.9%. This income strategy aligns well with the regional seasonal tourism and agricultural economic activities in the area.
Fair value modelled at €749,752 from 6 comparable sales in the area. Asking €620,000 sits €129,752 (17.3%) below — the upside to fair value.
Asking €620,000 versus the Castro Marim, Castro Marim, Faro area baseline of €614,104 (€2,791/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €614,104, adjusted for condition and micro-location, gives a modelled fair value of €749,752 (€3,408/m²), a €129,752 (17.3%) gap versus the €620,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Castro Marim · e554c6 | Subject | €620,000 | €2,818 | — | 76 | 51 |
| travessa Room. | Active | €699,000 | €2,785 | 1.2% | 80 | 51 |
| Castro Marim · 4d4783 | Active | €495,000 | €2,964 | 5.2% | 70 | 46 |
| Castro Marim · 937291 | Active | €675,000 | €3,994 | 41.7% | 68 | 58 |
| Castro Marim · 2cdb4a | Active | €447,500 | €2,712 | 3.8% | — | 53 |
| Median comp | €585,000 | €2,875 | 2.0% | 70 | 52 |
Long-term rental With a fair value of €749,752, the property at €620,000 presents a 17.3% gap, making it a compelling option for long-term rental strategies that can leverage its underpriced status. The 3.9% gross yield, combined with the decent property condition rating of 77/100, suggests a stable income stream in a rural Algarve area reliant on agriculture and seasonal tourism. Buy-and-hold The property’s pricing below fair value makes it an attractive buy-and-hold investment, allowing for capital appreciation over time in an economically stable neighborhood. Its condition rating of 77/100 reflects a solid investment quality, while the 3.9% gross yield indicates potential long-term profitability in the regional market. Not ideal for short-term vacation rental Given the lower neighborhood score of 51/100 and the reliance on seasonal tourism, a short-term vacation rental strategy may struggle to achieve desired occupancy levels. Additionally, the property's characteristics do not align well with vacation rental market demands, which typically favor properties in more desirable locations. Not ideal for luxury market The property’s current valuation does not meet the criteria of the luxury market due to its rural setting and overall average neighborhood amenities. Potential buyers seeking luxury investments may find better opportunities in urban or upscale locations that offer greater access to high-end amenities and services.
Economic vulnerability With an economic stability score of 40/100, this property is at risk due to potential market fluctuations impacting tenant retention 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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