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 158 m², built in 1997, energy rating E. Located on rua das Mélias, Quarteira parish, Loulé municipality, Faro district. Noteworthy Features: This property includes a barbecue area perfect for outdoor entertaining, alongside a community pool that enhances its appeal for relaxation and leisure activities.
The valuation. The asking price of €599,000 is below the fair value of €801,470, which indicates the property is subvalued by €202,470 (33.8%). This presents a compelling opportunity for potential investors. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the undervaluation, targeting a resale at or above €801,470 after minor improvements to enhance appeal. This could significantly boost profit margins. Buy-to-let angle. With an estimated rental income of €2,296/month, this property offers a gross yield of 4.6%, making it a viable option for long-term rental in a tourist-driven economy. This consistent income stream can enhance cash flow.
Fair value modelled at €801,470 from the area baseline, adjusted for condition and location. Asking €599,000 sits €202,470 (33.8%) below — the upside to fair value.
Asking €599,000 versus the rua das Mélias area baseline of €740,388 (€4,686/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 76 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua das Mélias
Area baseline €740,388 + condition +€7,653 + location +€58,801 = modelled fair value of €801,470 (€5,073/m²), a €202,470 (33.8%) gap versus the €599,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Mélias | Subject | €599,000 | €3,791 | — | 76 | 70 |
| rua de Volta das Alcachofras | Active | €448,000 | €4,571 | 20.6% | 70 | 72 |
| caminho das Searas, 14 | Active | €800,000 | €5,755 | 51.8% | 89 | 73 |
| Quarteira · 99f3ae | Active | €750,000 | €4,902 | 29.3% | 73 | 73 |
| rua de Volta do Faisão | Active | €530,000 | €3,419 | 9.8% | 75 | 70 |
| Median comp | €640,000 | €4,737 | 24.9% | 74 | 73 |
Short-term vacation rental The property's attractive fair value of €801,470 indicates a significant 33.8% gap when compared to its listing price of €599,000, positioning it favorably for short-term vacation rentals. Given the tourist-driven economy of Quarteira, this property can capitalize on high demand in the Algarve region, providing a gross yield of 4.6%. Long-term rental The property meets essential criteria for long-term rentals, with a decent condition rating of 78/100 and a neighborhood score of 70/100, ensuring tenant appeal. Its subvalued listing price relative to fair value offers an attractive opportunity for steady income generation through long-term leasing. Buy-and-hold This property represents a promising buy-and-hold strategy, with a fair value significantly surpassing the listing price, suggesting strong potential for appreciation over time. The robust performance in the tourist-driven Algarve market enhances the viability of holding this asset for future capital gains. Not ideal for student housing, luxury market, industrial investment.
Economic and Tenant Instability Risk: With both economic and tenant stability scores sitting at a moderate 65/100, there is a risk of fluctuating rental incomes, which may impact long-term returns on the investment.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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