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, 0-bathroom villa of 262 m², built in 2021. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa features a rooftop terrace with distant ocean views, a pétanque court, and a sauna that enhance its luxury appeal and outdoor entertainment options.
The valuation. The asking price of €1,750,000 is significantly above the fair value of €1,050,557, indicating the property is overpriced by €699,443, or 40.0%. This discrepancy raises concerns about investment viability.
Fair value modelled at €1,050,557 from the area baseline, adjusted for condition and location. Asking €1,750,000 sits €699,443 (40.0%) above — overpriced versus fair value.
Asking €1,750,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €942,414 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 (Condition 90 · Materials 90 · Room dimensions 87). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €942,414 + condition +€32,750 + location +€75,393 = modelled fair value of €1,050,557 (€4,010/m²), a €699,443 (40.0%) gap versus the €1,750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · cfe1d2 | Subject | €1,750,000 | €6,679 | — | 90 | 70 |
| Loulé (São Clemente) · 4a7e16 | Active | €298,000 | €5,960 | 10.8% | 76 | 73 |
| Loulé (São Clemente) · 956a5e | Active | €520,000 | €5,000 | 25.1% | — | 74 |
| Loulé (São Sebastião) · 4a8228 | Active | €700,000 | €5,833 | 12.7% | 78 | 64 |
| Loulé (São Sebastião) · ba582d | Active | €699,900 | €4,666 | 30.1% | 70 | 74 |
| Median comp | €609,950 | €5,417 | 18.9% | 76 | 74 |
Short-term vacation rental Given the popularity of Loulé as a tourist destination, the property could attract seasonal visitors, but the current listing price is significantly higher than its fair value. With a gross yield of only 1.6%, the financial return does not justify the premium, indicating the asking price may be unsustainable. Buy-and-hold Investing in this property for long-term appreciation is questionable due to its 40.0% gap from fair value, suggesting its current price is inflated. The property’s high condition rating is appealing, yet the inflated price diminishes the potential for profitable future resale. Long-term rental While the property is in a desirable tourist area that may provide steady rental demand, the asking price being 40.0% above fair value poses significant risk for long-term investment viability. The low yield of 1.6% indicates that even rental income may not sufficiently cover costs relative to the high entry price, making it an unwise choice for long-term rental strategy.
Economic Volatility Risk The economic stability score of 65 suggests potential fluctuations in the local economy, which could affect rental demand and property values adversely.Tenant Stability Risk With a tenant stability score of 65, there may be concerns regarding tenant turnover and reliability, impacting steady cash flow.
