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, 4-bathroom house of 269 m², built in 2019, energy rating A. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This villa includes a natural stone staircase and a modern kitchen with integrated appliances, enhancing its luxurious aesthetic and functional design. Notáveis Características: Esta villa inclui uma escadaria em pedra natural e uma cozinha moderna com eletrodomésticos integrados, melhorando a sua estética luxuosa e design funcional.
The valuation. The asking price of €1,950,000 is significantly above the fair value of €1,047,662, representing an overvaluation of €902,338 (46.3%). This indicates the property is overpriced compared to the market. Buy-to-flip angle. A potential strategy for resale could involve renovation to enhance the property’s appeal, aimed at attracting buyers willing to pay a premium in this desirable Algarve region. Buy-to-let angle. The estimated rental income of €3,575/month offers a gross yield of 2.2%, making it more suitable for long-term rental investments amid growing tourism demand in the area.
Fair value modelled at €1,047,662 from the area baseline, adjusted for condition and location. Asking €1,950,000 sits €902,338 (46.3%) above — overpriced versus fair value.
Asking €1,950,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €830,672 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 85 · Materials 88 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Clemente), Loulé, Faro
Area baseline €830,672 + condition +€33,625 + location +€46,444 = modelled fair value of €1,047,662 (€3,895/m²), a €902,338 (46.3%) gap versus the €1,950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 96c525 | Subject | €1,950,000 | €7,249 | — | 85 | 62 |
| autoestrada EM520-1, 340 | Active | €2,250,000 | €4,611 | 36.4% | 85 | 72 |
| rua da Fábrica | Active | €675,000 | €5,672 | 21.8% | 80 | 64 |
| rua Dom Afonso Henriques | Active | €1,695,000 | €4,788 | 33.9% | 80 | 65 |
| estrada de Vale de Éguas | Active | €2,500,000 | €6,173 | 14.8% | 88 | 74 |
| Median comp | €1,972,500 | €5,230 | 27.9% | 83 | 69 |
Short-term vacation rental With a gross yield of only 2.2%, this property does not align well with the potential returns typical for short-term vacation rentals in the Algarve, especially given its 46.3% gap from fair value. The condition rating of 86/100 may appeal to renters, but the property's overpriced status could significantly diminish profitability in a competitive market. Buy-and-hold The property’s significant price over fair value makes it a less attractive option for a buy-and-hold investment strategy, as capital appreciation may lag behind more reasonably priced alternatives. With a neighbourhood rating of 62/100, the potential for future value increases is limited, rendering it a risky long-term investment. Long-term rental Investing in long-term rental properties typically requires a strong yield; however, this property’s 2.2% yield does not justify its high purchase price of €1,950,000. Additionally, the neighbourhood’s challenges, reflected in its 62/100 score, further complicate the attractiveness of this listing as a long-term rental opportunity.
Economic Vulnerability The property's economic stability score of 55/100 indicates a risk of fluctuations in market conditions that could negatively affect occupancy rates and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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