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 villa of 156 m², energy rating B. Located Santa Bárbara de Nexe parish, Faro municipality, Faro district. Noteworthy Features: The villa boasts expansive outdoor living spaces, including a large terrace overlooking breathtaking ocean views and a meticulously maintained swimming pool with stone masonry accents.
The valuation. The asking price of €1,050,000 is significantly higher than the fair value of €843,655, resulting in an overpriced status by €206,345 (24.5%). This indicates that investors should approach with caution regarding potential fair market adjustments.
Fair value modelled at €843,655 from 6 comparable sales in the area. Asking €1,050,000 sits €206,345 (24.5%) above — overpriced versus fair value.
Asking €1,050,000 versus the Santa Bárbara de Nexe, Faro, Faro area baseline of €713,377 (€4,573/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 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 €713,377, adjusted for condition and micro-location, gives a modelled fair value of €843,655 (€5,408/m²), a €206,345 (24.5%) gap versus the €1,050,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Santa Bárbara de Nexe · e55557 | Subject | €1,050,000 | €6,731 | — | 82 | 60 |
| estrada de Loulé, 216A | Active | €1,290,000 | €4,418 | 34.4% | 82 | 67 |
| Santa Bárbara de Nexe · b329b3 | Active | €1,600,000 | €5,333 | 20.8% | 78 | 62 |
| Santa Bárbara de Nexe · ee87a6 | Active | €795,000 | €5,483 | 18.5% | 77 | 65 |
| Santa Bárbara de Nexe · 8ee30e | Active | €840,000 | €5,793 | 13.9% | 78 | 63 |
| Median comp | €1,065,000 | €5,408 | 19.7% | 78 | 64 |
Long-term rental This 3-bed villa in Santa Bárbara de Nexe is priced at €1,050,000, which is 24.5% above its fair value of €843,655, indicating it is overpriced for a long-term rental strategy. With a gross yield of only 1.3%, the return on investment is insufficient to justify the elevated purchase price. Short-term vacation rental With its high price point compared to the fair value, this property would struggle to achieve profitability as a short-term vacation rental, making it a less attractive option. Additionally, the neighborhood rating of 60/100 suggests limitations in attracting consistent tourist demand relative to other Algarve locations. Buy-and-hold The buy-and-hold strategy is hampered by the property’s current listing price being significantly above its fair market value, making it a poor investment choice in this scenario. Given the economic conditions and housing market, this villa's potential for appreciation may not offset the initial overpricing. Not ideal for: This property is not suited for student housing due to its pricing and location dynamics, nor does it fit into the luxury market segment where buyers expect significant value justification. Its lack of appeal for industrial use further confirms it as a specialized residential investment where current metrics do not align favorably.
Economic Vulnerability The low Economic Stability score of 50/100 indicates a potential risk of economic downturns affecting rental income and property value.
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