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, 2-bathroom townhouse of 102 m². Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The townhouse includes a private garden space ideal for outdoor entertaining, and its location in the Algarve region provides strong potential for short-term rental income due to tourism. Valuation Verdict: This property represents a strategic choice for investors seeking diversification in the residential market.
The valuation. The asking price of €750,000 sits significantly above the assessed fair value of €403,324, indicating the property is overpriced by €346,676 (46.2%). This disparity suggests potential challenges for a profitable investment.
Fair value modelled at €403,324 from the area baseline, adjusted for condition and location. Asking €750,000 sits €346,676 (46.2%) above — overpriced versus fair value.
Asking €750,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €366,894 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 74 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €366,894 + condition +€4,144 + location +€32,287 = modelled fair value of €403,324 (€3,954/m²), a €346,676 (46.2%) gap versus the €750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · cfe1f2 | Subject | €750,000 | €7,353 | — | 74 | 72 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 27.1% | 78 | 63 |
| União das Freguesias de Querença, Tôr e Benafim · 96c18c | Active | €2,250,000 | €6,048 | 17.7% | 82 | 64 |
| Loulé (São Sebastião) · 6d54b0 | Active | €2,500,000 | €6,720 | 8.6% | 82 | 59 |
| Loulé (São Sebastião) · 4a7f7f | Active | €725,000 | €3,021 | 58.9% | 70 | 61 |
| Median comp | €2,297,500 | €6,384 | 13.2% | 80 | 62 |
Short-term vacation rental The property is overpriced at €750,000 compared to its fair value of €403,324, indicating a significant market gap of 46.2%. With a gross yield of only 2.5%, it fails to provide the reliable returns typically sought after in the short-term rental market. Buy-and-hold Given the current valuation of €750,000, which is 46.2% above fair value, long-term holding appears unwise for this asset. The overall condition of 78/100 and the modest neighborhood rating of 72/100 further reduce its potential as a stable investment in appreciation over time. Family rental At a listing price of €750,000, significantly exceeding its fair value, the property does not align with the typical investment parameters for family rentals. Its low gross yield of 2.5% and the insufficient appeal of the surrounding neighborhood suggest that it is not an optimal choice for long-term family housing purposes.
Potential Tenant Turnover The combination of a 65/100 economic stability score and a 70/100 tenant stability score indicates a risk of tenant turnover, which could lead to increased vacancy rates and rental income fluctuations.
