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.
3-bedroom, 3-bathroom house of 347 m², built in 2009, energy rating D. Located on rua de Vale Telheiro, Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The property includes a generous 3,200 m² garden with ancient trees and a solar-exposed heated pool, enhancing the Mediterranean ambiance and offering exceptional privacy. Condition Notes: Minor signs of wear present in some areas could benefit from updates, but overall the property retains a high-quality finish post-renovation.
The valuation. The asking price of €1,350,000 is €701 (0.1%) above the fair value of €1,349,299, indicating that the property is overpriced given the current market conditions. This slight premium does not justify a purchase at this price point.
Fair value modelled at €1,349,299 from the area baseline, adjusted for condition and location. Asking €1,350,000 sits €701 (0.1%) above — overpriced versus fair value.
Asking €1,350,000 versus the rua de Vale Telheiro area baseline of €1,248,159 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 78 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua de Vale Telheiro
Area baseline €1,248,159 + condition +€16,266 + location +€84,875 = modelled fair value of €1,349,299 (€3,888/m²), a €701 (0.1%) gap versus the €1,350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Vale Telheiro | Subject | €1,350,000 | €3,890 | — | 75 | 67 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 9.2% | 72 | 71 |
| Loulé (São Clemente) · 65a743 | Active | €380,000 | €6,552 | 68.4% | 80 | 60 |
| Loulé (São Sebastião) · 99f3a3 | Active | €820,000 | €3,142 | 19.2% | 74 | 63 |
| Loulé (São Sebastião) · ba582d | Active | €699,900 | €4,666 | 19.9% | 70 | 74 |
| Median comp | €664,450 | €4,100 | 5.4% | 73 | 67 |
Long-term rental This 3-bed house in Loulé is overpriced at €1,350,000, closely aligned with its fair value of €1,349,299, resulting in limited rental yield potential of only 1.8%. Given the neighbourhood score of 67/100, tenant demand may not support the current pricing, impacting long-term rental viability. Short-term vacation rental Although the coastal Algarve region is known for tourism, the €1,350,000 price tag on this property, which has only a 1.8% gross yield, indicates it may not be a sound investment for short-term vacation rentals. The condition rating of 78/100 suggests that while the property is livable, it does not offer enough premium features to justify its current price in the competitive vacation market. Buy-and-hold Investing in this property as a buy-and-hold strategy is not ideal, as the market price of €1,350,000 only marginally exceeds its fair value, offering negligible appreciation potential. The overall neighbourhood rating of 67/100 and the underlying price gap suggest that this property will struggle to deliver satisfactory returns over time, making it a weaker long-term hold. Not ideal for student housing This 3-bed house is not suited for student housing primarily due to its high price of €1,350,000 which does not align with typical student budgets. Furthermore, the car dependency in the area may limit its attractiveness to this demographic. Not ideal for luxury market The property does not cater well to the luxury market, given its overpriced listing at €1,350,000 which offers minimal return potential at just 1.8% yield. Luxury buyers typically seek unique features that justify higher prices, yet this property does not stand out enough to attract that segment effectively.
Economic Vulnerability The economic stability score of 60/100 indicates a potential risk of downturns in the local economy, which could impact rental income stability. Tenant Instability With a tenant stability score of 65/100, there is a moderate risk of higher tenant turnover, leading to increased vacancy rates and loss of income.
