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.
5-bedroom, 4-bathroom house of 324 m², energy rating D. Located on rua da Dinamarca, 1, Quarteira parish, Loulé municipality, Faro district. The property features unique Moorish-inspired architectural elements, such as ornamental chimneys and curved lines, alongside direct access to a prestigious golf course, enhancing its luxury appeal.
The valuation. The asking price of €1,750,000 is positioned above fair value at €1,594,922, translating to an excess of €155,078 (8.9%). The current premises are therefore considered overpriced.
Fair value modelled at €1,594,922 from the area baseline, adjusted for condition and location. Asking €1,750,000 sits €155,078 (8.9%) above — overpriced versus fair value.
Asking €1,750,000 versus the rua da Dinamarca, 1 area baseline of €1,507,248 (€4,652/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 (Condition 72 · Materials 65 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Dinamarca, 1
Area baseline €1,507,248 + condition -€32,906 + location +€120,580 = modelled fair value of €1,594,922 (€4,923/m²), a €155,078 (8.9%) gap versus the €1,750,000 asking price.
Long-term rental This property, with a gross yield of only 2.6%, indicates that the potential returns do not justify the €1,750,000 asking price, especially since it is priced 8.9% above fair value. Given the stale condition rating of 69/100, long-term rental viability appears limited despite the Algarve's attractive tourism-driven economy. Short-term vacation rental Although the Quarteira area attracts tourists, the property is overpriced at €1,750,000, leading to an insufficient yield of 2.6% gross compared to fair market value. The property's condition and elevated price create additional challenges for profitability in the short-term vacation rental market. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable as the valuation stands at €1,750,000, which is 8.9% above fair value. The combination of a low gross yield of 2.6% and a condition score of 69/100 suggests limited long-term appreciation potential in the current market dynamics.
Economic Vulnerability The property faces potential risks due to its economic stability score of 60/100, indicating a moderate level of economic uncertainty that could affect tenant retention and rental income.
