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.
5-bedroom, 4-bathroom country_house of 390 m², built in 1921. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Unique Feature: The property includes an independent annex designed for guests, offering privacy and convenience for visitors while complementing the main house's elegant charm. Outdoor Space: A superbly landscaped garden surrounds a tranquil pool, enhancing the estate's allure.
The valuation. The asking price of €1,730,000 sits €178,254 (10.3%) above the fair value of €1,551,746, indicating that the property is overpriced in the current market environment.
Fair value modelled at €1,551,746 from the area baseline, adjusted for condition and location. Asking €1,730,000 sits €178,254 (10.3%) above — overpriced versus fair value.
Asking €1,730,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,402,830 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 78 · Amenities 72 · Economic 65 · Tenant Quality 68). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €1,402,830 + condition +€31,078 + location +€117,838 = modelled fair value of €1,551,746 (€3,979/m²), a €178,254 (10.3%) gap versus the €1,730,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · f3638b | Subject | €1,730,000 | €4,436 | — | 75 | 71 |
| Quarteira · 25f677 | Active | €1,485,000 | €4,541 | 2.4% | 80 | 70 |
| caminho de Vale Covo | Active | €1,195,000 | €3,096 | 30.2% | 85 | 63 |
| estrada de Vale Judeu | Active | €790,000 | €3,798 | 14.4% | 80 | 70 |
| Quarteira · 023911 | Active | €1,275,000 | €7,083 | 59.7% | 85 | 74 |
| Median comp | €1,235,000 | €4,170 | 6.0% | 83 | 70 |
Short-term vacation rental The property is likely not suitable for short-term vacation rentals given its 10.3% gap from fair value, indicating an overpriced listing. With a gross yield of only 2.8%, the potential returns may fail to justify the investment in a competitive rental market. Long-term rental Investing in this property for long-term rental purposes also appears unwise, as it is overpriced by 10.3% compared to fair value. The low yield of 2.8% suggests that the income generated may not be sufficient to cover the initial investment costs. Buy-and-hold The buy-and-hold strategy is not recommended for this property due to its current overpriced status, with a 10.3% discrepancy from fair value. Analyzing the requisites for appreciation, the low yield of 2.8% indicates limited growth potential in the long run.
Economic vulnerability The economic stability score of 65/100 indicates a moderate level of economic risk, suggesting potential fluctuations in property value and tenant retention that could impact overall investment returns.
