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 75 m², built in 1950, energy rating F. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Unique feature: The property offers potential for a first floor addition with panoramic views of Loulé Castle, subject to municipal approval, enhancing its desirability and investment value.
The valuation. The asking price of €199,500 is below the fair value of €218,271, indicating that this property is subvalued by €18,771 (9.4%). This creates an attractive entry point for investors seeking value. Buy-to-flip angle. A buy-to-flip strategy could focus on making essential upgrades to improve the outdated materials and finishes, allowing for a resale at a higher price than the acquisition cost. Targeting a refresh could maximize profit potential. Buy-to-let angle. With an estimated rental income of €815/month, the property presents a gross yield of 4.9%. The demand driven by both long-term residents and seasonal tourists augments its appeal for rental strategies.
Fair value modelled at €218,271 from the area baseline, adjusted for condition and location. Asking €199,500 sits €18,771 (9.4%) below — the upside to fair value.
Asking €199,500 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €225,900 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 20/100 (Condition 15 · Materials 18 · Room dimensions 30). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €225,900 + condition -€64,453 + location +€12,949 = modelled fair value of €218,271 (€2,910/m²), a €18,771 (9.4%) gap versus the €199,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 1e6507 | Subject | €199,500 | €2,660 | — | 15 | 62 |
| Loulé (São Clemente) · 261d44 | Active | €280,000 | €2,545 | 4.3% | — | 68 |
| Loulé (São Clemente) · 0019c0 | Active | €290,000 | €3,152 | 18.5% | 28 | 72 |
| rua Sebastião Cordeiro, 14 | Active | €380,000 | €4,222 | 58.7% | — | 64 |
| Loulé (São Clemente) · 956801 | Active | €280,000 | €1,333 | 49.9% | — | 59 |
| Median comp | €285,000 | €2,849 | 7.1% | 28 | 66 |
Long-term rental The villa in Loulé presents a promising opportunity for long-term rental, showcasing a gross yield of 4.9%, which can attract a steady stream of tenants in this mixed permanent and seasonal resident area. Given the property’s fair value exceeds the listing price by 9.4%, it is an ideal candidate for creating stable cash flow over time. Short-term vacation rental Positioned in the tourism-driven Algarve, this villa is well-suited for short-term vacation rentals, capitalizing on the region's strong visitor influx. The 9.4% gap between the listing and fair value suggests an attractive entry point for vacation rental investors looking to capitalize on the area’s tourism potential. Buy-and-hold Acquiring this villa as a buy-and-hold investment allows for potential appreciation, supported by the ongoing demand in Loulé's real estate market, driven by its tourism economy. The identification of the property as 9.4% below fair value strengthens the thesis for retaining the asset for long-term growth.
Economic uncertainty risk The economic stability score of 60/100 indicates moderate risk, while the tenant stability score of 55/100 suggests potential difficulties in tenant retention, increasing vacancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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