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.
7-bedroom, 2-bathroom house of 247 m², built in 1951, energy rating F. Located on rua do Castelo, Salir parish, Loulé municipality, Faro district. Unique Feature: The property includes two urban articles and is arranged around a charming inner courtyard, offering significant architectural potential for innovative renovation projects. Condition Note: Extensive repairs are needed due to severe disrepair and water damage.
The valuation. The asking price of €245,000 is significantly below the fair value of €730,820, representing a remarkable discount of €485,820 (198.3%). Verdict: underpriced. Buy-to-flip angle. The property can be renovated to modern standards and flipped for substantial profit, given the high demand in Salir and the surrounding tourist areas. Buy-to-let angle. Given the location in the Algarve, the property has the potential for consistent rental income through long-term rentals or by leveraging seasonal demand for short-term vacation rentals.
Fair value modelled at €730,820 from the area baseline, adjusted for condition and location. Asking €245,000 sits €485,820 (198.3%) below — the upside to fair value.
Asking €245,000 versus the rua do Castelo area baseline of €329,745 (€1,335/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 19/100 (Condition 15 · Materials 20 · Room dimensions 30). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 67/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua do Castelo
Area baseline €329,745 + condition -€218,055 + location +€60,415 = modelled fair value of €730,820 (€2,959/m²), a €485,820 (198.3%) gap versus the €245,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Castelo | Subject | €245,000 | €992 | — | 15 | 67 |
| Salir · 4a7e44 | Active | €395,000 | €1,282 | 29.3% | 35 | 58 |
| Salir · 023842 | Active | €218,000 | €1,772 | 78.7% | 45 | 58 |
| autoestrada EM503, 416 | Active | €235,000 | €2,866 | 188.9% | — | 64 |
| Salir · 1e6038 | Active | €255,000 | €3,643 | 267.3% | 60 | 71 |
| Median comp | €245,000 | €2,319 | 133.8% | 45 | 61 |
Long-term rental The property in Salir, Loulé, is currently listed at €245,000, creating a significant opportunity with a fair value of €730,820, indicating it is subvalued by 198.3%. Given the moderate crime rates and decent neighborhood score of 67/100, it can provide stable rental income in a region well positioned for long-term growth. Short-term vacation rental With a current listing price of €245,000 against a fair value of €730,820, this property presents an attractive investment for short-term vacation rentals in the popular Algarve tourist region. Although the property has a low condition score of 19/100, the substantial gap to fair value suggests potential robust returns as tourist demand escalates in the area. Buy-and-hold Investing in this property at the listing price of €245,000 offers a unique buy-and-hold opportunity, given its fair value of €730,820 and a striking gap of 198.3%. The residential neighborhood's quality and proximity to tourist hotspots will likely appreciate over time, turning this undervalued property into a key asset in any real estate portfolio.
Economic Downturn Risk The economic stability score of 60/100 indicates a potential vulnerability to downturns, which could affect rental income and property value.
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