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.
4-bedroom, 3-bathroom villa of 372 m², built in 2020, energy rating A. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The property includes an independent annex ideal for versatile uses, such as guest accommodation or a private cinema, and boasts nearly 7 hectares of untouched land, perfect for equestrian activities.
The valuation. The asking price of €2,500,000 is significantly above the fair value of €1,432,755, reflecting an excess of €1,067,245 (42.7%). This property is thus overpriced in the current market.
Fair value modelled at €1,432,755 from the area baseline, adjusted for condition and location. Asking €2,500,000 sits €1,067,245 (42.7%) above — overpriced versus fair value.
Asking €2,500,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,338,084 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 82 · Materials 88 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 59/100 (Housing Market 60 · Amenities 60 · Economic 50 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €1,338,084 + condition +€46,500 + location +€48,171 = modelled fair value of €1,432,755 (€3,851/m²), a €1,067,245 (42.7%) gap versus the €2,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 6d54b0 | Subject | €2,500,000 | €6,720 | — | 82 | 59 |
| estrada do Sobradinho | Active | €1,295,000 | €4,302 | 36.0% | 85 | 76 |
| Loulé (São Sebastião) · 956ee6 | Active | €1,450,000 | €3,616 | 46.2% | 78 | 73 |
| Loulé (São Sebastião) · 4a7dfc | Active | €3,300,000 | €27,500 | 309.2% | 85 | 70 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 39.0% | 78 | 63 |
| Median comp | €1,897,500 | €6,823 | 1.5% | 82 | 72 |
Long-term rental The property is overpriced by 42.7%, with a fair value of €1,432,755 compared to its listing at €2,500,000, indicating significant risk from reduced monthly rental prices. The gross yield of 2.3% is well below the ideal benchmarks for long-term rentals, raising concerns about cash flow sustainability. Short-term vacation rental Given its overpriced status, the villa's performance as a short-term vacation rental may be hindered by limited demand driven by the mid-sized town location in Algarve. Additionally, with a neighbourhood quality score of only 59/100, the property could struggle to attract tourists amidst competition from more well-located offerings. Family rental While the condition of the property is strong at 85/100, the 42.7% gap versus fair value suggests that it may not be appealing to families seeking value for their housing investment. Furthermore, the average economic and educational context in Loulé may deter families from paying a premium for this villa. Not ideal for: The property is not suitable for student housing due to the local market amenities and school quality being typical of a rural setting. Entering the luxury market may also prove challenging, as the listing price does not align with the overall neighbourhood’s ratings and characteristics.
Economic volatility risk The economic stability score of 50/100 indicates potential fluctuations in the local economy, which may impact tenant retention and rental income stability.
