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.
2-bedroom, 1-bathroom villa of 142 m², built in 1951, energy rating D. Located Alte parish, Loulé municipality, Faro district. Noteworthy Features: This villa boasts a private outdoor area with a pool, a built-in barbecue, and a mature lemon tree, all enhancing its appeal for entertaining.
The valuation. The asking price of €425,000 is significantly below the fair value of €569,478, indicating this property is underpriced by €144,478 (34.0%). This presents a unique investment opportunity for potential buyers.
Fair value modelled at €569,478 from the area baseline, adjusted for condition and location. Asking €425,000 sits €144,478 (34.0%) below — the upside to fair value.
Asking €425,000 versus the Alte, Loulé, Faro area baseline of €510,774 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 78 · Materials 83 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Alte, Loulé, Faro
Area baseline €510,774 + condition +€13,756 + location +€44,948 = modelled fair value of €569,478 (€4,010/m²), a €144,478 (34.0%) gap versus the €425,000 asking price.
Short-term vacation rental With a fair value of €569,478 while currently listed at €425,000, this property presents a significant opportunity for short-term vacation rentals in the tourist-driven Algarve market. Its solid condition score of 81/100 further enhances its appeal to travelers seeking quality accommodations. Buy-and-hold The villa's listing price is 34.0% below its fair value, indicating a strong potential for appreciation in the long term, particularly in a region where tourism remains the backbone of the economy. Coupled with a favorable neighborhood score of 72/100, this property offers an attractive option for investors looking to capitalize on future market growth. Family rental Although the villa does not yield any gross income, its pricing under fair market value suggests potential for stable long-term rent, particularly for families seeking accommodation in the Algarve. Given the neighborhood's decent score, this property could serve as a reliable option for family renters, benefiting from the area's ample amenities.
Economic Dependency Risk: With an economic stability score of 65/100, there is a moderate risk that local economic fluctuations could negatively impact property values and rental income.
