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, 5-bathroom house of 251 m², built in 2013, energy rating C. Located on rua de Cerro de Alfeição, 15, Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property boasts extensive gardens with a diverse array of fruit trees, providing a year-round natural retreat and exceptional outdoor ambiance.
The valuation. The asking price of €2,345,000 is significantly above the fair value of €971,365, representing an excessive markup of €1,373,635 (58.6%). This property is considered overpriced given its true market worth.
Fair value modelled at €971,365 from the area baseline, adjusted for condition and location. Asking €2,345,000 sits €1,373,635 (58.6%) above — overpriced versus fair value.
Asking €2,345,000 versus the rua de Cerro de Alfeição, 15 area baseline of €902,847 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 78 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua de Cerro de Alfeição, 15
Area baseline €902,847 + condition +€21,570 + location +€46,948 = modelled fair value of €971,365 (€3,870/m²), a €1,373,635 (58.6%) gap versus the €2,345,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Cerro de Alfeição, 15 | Subject | €2,345,000 | €9,343 | — | 78 | 63 |
| Loulé (São Sebastião) · 956ee6 | Active | €1,450,000 | €3,616 | 61.3% | 78 | 73 |
| Loulé (São Sebastião) · ba582d | Active | €699,900 | €4,666 | 50.1% | 70 | 74 |
| estrada do Sobradinho | Active | €1,295,000 | €4,302 | 53.9% | 85 | 76 |
| Loulé (São Sebastião) · cfe1f2 | Active | €750,000 | €7,353 | 21.3% | 74 | 72 |
| Median comp | €1,022,500 | €4,484 | 52.0% | 76 | 74 |
Short-term vacation rental While Loulé's proximity to tourist hotspots may initially appear attractive, the property's current asking price represents a significant 58.6% gap above its fair value, suggesting it is overpriced for this use. With a gross yield of only 2.1%, the return on investment for short-term rentals would likely be diminished, making this strategy less appealing. Long-term rental Given the significant overpricing of this property, with a fair value of €971,365 compared to a listing of €2,345,000, pursuing a long-term rental strategy may not yield satisfactory returns. The yield of 2.1% combined with a neighbourhood rating of 63/100 indicates challenges in tenant stability, further complicating this investment avenue. Buy-and-hold The projected holding strategy for this property is undermined by its overvaluation, reflecting a substantial disconnect between the listing and fair market value. The neighbourhood's 63/100 score suggests limited growth potential, weakening the case for long-term appreciation amidst seasonal population fluctuations. Not ideal for student housing, luxury market, industrial investments.
Tenant turnover risk The tenant stability score of 65/100 indicates a moderate risk of tenant turnover, which can lead to increased vacancy rates and costs.
