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, 6-bathroom villa of 430 m², energy rating B. Located União das Freguesias de Querença, Tôr e Benafim parish, Loulé municipality, Faro district. This property features a fully restored traditional Portuguese cottage with modern amenities, providing additional living space and direct access to the saltwater pool area, enhancing its retreat-like appeal.
The valuation. The asking price of €1,595,000 is significantly below the fair value of €2,195,269, creating a difference of €600,269, which indicates that it is underpriced by 37.6%. Buy-to-flip angle. With potential renovations and updates, this 5-bed villa can be flipped for a higher market price, appealing to investors focused on quick resale strategies in the active Algarve market. Buy-to-let angle. Given the location's reliance on tourism, a buy-to-let strategy incorporating short-term vacation rentals can be profitable, maximizing rental income potential in the high-demand rural Algarve region.
Fair value modelled at €2,195,269 from the area baseline, adjusted for condition and location. Asking €1,595,000 sits €600,269 (37.6%) below — the upside to fair value.
Asking €1,595,000 versus the União das Freguesias de Querença, Tôr e Benafim, Loulé, Faro area baseline of €2,061,850 (€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 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
União das Freguesias de Querença, Tôr e Benafim, Loulé, Faro
Area baseline €2,061,850 + condition +€26,203 + location +€107,216 = modelled fair value of €2,195,269 (€5,105/m²), a €600,269 (37.6%) gap versus the €1,595,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| União das Freguesias de Querença, Tôr e Benafim · 0dcda7 | Subject | €1,595,000 | €3,709 | — | 75 | 63 |
| União das Freguesias de Querença, Tôr e Benafim · 6fbc5a | Active | €1,595,000 | €3,709 | 0% | 72 | 54 |
| rua da Inglaterra | Active | €1,950,000 | €3,645 | 1.7% | 85 | 66 |
| Loulé (São Clemente) · 6d535e | Active | €1,350,000 | €4,272 | 15.2% | 80 | 70 |
| Boliqueime · 25f7b8 | Active | €550,000 | €3,716 | 0.2% | 73 | 67 |
| Median comp | €1,472,500 | €3,713 | 0.1% | 77 | 67 |
Long-term rental The property offers a substantial 5-bed layout in a rural area, positioning it for potential long-term rental demand amidst the tourism-centric economy. However, with a fair value gap of 37.6%, this villa may not meet the expected yield performance for a traditional rental strategy. Short-term vacation rental Situated in an appealing location for tourists, the villa can leverage its size to attract vacationers looking for quality accommodations in the Algarve. Still, the zero gross yield indicates potential challenges in generating satisfactory returns from a short-term rental perspective, especially with a relatively low neighborhood score of 63/100. Buy-and-hold Investing in this villa as a buy-and-hold strategy presents a favorable fair value assessment, indicating strong long-term appreciation potential given the 37.6% gap. However, with current rental yields positioning at 0%, the immediate cash flow may be lacking in the investment horizon.
Economic Vulnerability The property is at risk due to the low economic stability score of 55/100, indicating potential volatility in income generation and overall financial security. Tenant Vulnerability The tenant stability score of 60/100 suggests a moderate level of risk, which may point to potential turnover and vacancy challenges in maintaining reliable rental income.
