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, 1-bathroom house of 110 m², built in 1930, energy rating E. Located União das Freguesias de Querença, Tôr e Benafim parish, Loulé municipality, Faro district. This property features an outbuilding in the garden, perfect for a laundry, office, or gym, enhancing its functionality while maintaining the charm of traditional Algarve architecture.
The valuation. The asking price of €399,000 is significantly below the fair value of €574,755, which equates to an undervaluation of €175,755 (44.0%). This presents a compelling investment opportunity based on market fundamentals.
Fair value modelled at €574,755 from the area baseline, adjusted for condition and location. Asking €399,000 sits €175,755 (44.0%) below — the upside to fair value.
Asking €399,000 versus the União das Freguesias de Querença, Tôr e Benafim, Loulé, Faro area baseline of €527,450 (€4,795/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
União das Freguesias de Querença, Tôr e Benafim, Loulé, Faro
Area baseline €527,450 + condition +€7,219 + location +€40,086 = modelled fair value of €574,755 (€5,225/m²), a €175,755 (44.0%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| União das Freguesias de Querença, Tôr e Benafim · 99f396 | Subject | €399,000 | €3,627 | — | 75 | 69 |
| Loulé (São Clemente) · 023ce9 | Active | €875,000 | €4,605 | 27.0% | 75 | 54 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 2.6% | 72 | 71 |
| Quarteira · dee622 | Active | €1,750,000 | €5,385 | 48.4% | 72 | 65 |
| Loulé (São Clemente) · 956bf4 | Active | €769,000 | €3,315 | 8.6% | 75 | 60 |
| Median comp | €822,000 | €4,070 | 12.2% | 74 | 63 |
Long-term rental The property is strategically located in a tourist-heavy area of the Algarve, which could support stable demand for long-term rentals due to its potential appeal for residents who work in the tourism sector. Given the fair value suggests a significant gap, this investment can yield long-term returns as the market stabilizes. Short-term vacation rental With the Algarve's reputation as a popular tourist destination, this property presents an opportunity for lucrative short-term rental income, leveraging its location to attract vacationers. The estimated fair value of €574,755 indicates the potential to generate high returns, especially during the peak tourism season. Buy-and-hold This property is poised for appreciation due to its subvalorizada price relative to market value, making it a compelling addition for a long-term investment strategy in the Algarve. Holding the property can provide capital appreciation as market conditions improve and demand grows in the region. Not ideal for student housing The property’s location and neighborhood dynamics, reliant heavily on tourism rather than a stable student population, make it less suited for student housing investments. The current market trends do not indicate a strong demand for this type of rental in the area. Not ideal for luxury market The property does not align with the typical luxury market expectations in terms of condition and neighborhood ratings, suggesting lower demand in that segment. Thus, investing with a focus on the luxury market may yield disappointing results.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of economic downturns affecting rental income stability, while a tenant stability score of 70 suggests that there may be moderate turnover and vacancy risks.
