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.
6-bedroom, 9-bathroom villa of 850 m², energy rating B. Located on estrada da Horta, Almancil parish, Loulé municipality, Faro district. This villa features a spacious roof terrace with a bar, outdoor kitchen, gas fireplace, and jacuzzi, providing a luxurious space for entertaining while enjoying scenic views.
The valuation. The asking price of €8,900,000 is significantly above the calculated fair value of €5,158,157, by €3,741,843 (42.0%), indicating it is overpriced. This discrepancy highlights the potential challenges for securing a favorable deal. Buy-to-flip angle. A buy-to-flip strategy could focus on targeting high-income buyers attracted to the luxurious finishes and prime location but would require substantial market appreciation to realize returns given the current valuation. Buy-to-let angle. The rental income strategy could involve capitalizing on short-term vacation rentals due to the villa’s high-end features, offering potential monthly earnings of approximately €10,383. However, the gross yield stands at only 1.4%, suggesting limited profitability.
Fair value modelled at €5,158,157 from the area baseline, adjusted for condition and location. Asking €8,900,000 sits €3,741,843 (42.0%) above — overpriced versus fair value.
Asking €8,900,000 versus the estrada da Horta area baseline of €4,796,550 (€5,643/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 94/100 (Condition 90 · Materials 96 · Room dimensions 92). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
estrada da Horta
Area baseline €4,796,550 + condition +€106,250 + location +€285,957 = modelled fair value of €5,158,157 (€6,068/m²), a €3,741,843 (42.0%) gap versus the €8,900,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada da Horta | Subject | €8,900,000 | €10,471 | — | 90 | 65 |
| Almancil · 25f5b0 | Active | €3,995,000 | €9,816 | 6.3% | 84 | 73 |
| Almancil · bf27d0 | Active | €3,995,000 | €9,816 | 6.3% | 90 | 61 |
| Almancil · 090284 | Active | €1,700,000 | €5,519 | 47.3% | 85 | 70 |
| Almancil · 4bbf27 | Active | €1,390,000 | €9,858 | 5.8% | 85 | 63 |
| Median comp | €2,847,500 | €9,816 | 6.3% | 85 | 67 |
Short-term vacation rental The villa's current valuation of €8,900,000 is significantly above its fair value of €5,158,157, indicating it is overpriced for the short-term vacation rental market. With a gross yield of only 1.4%, potential returns may not justify the investment risk given the gap in valuation. Buy-and-hold The property is priced at €8,900,000, which is well above its fair value of €5,158,157, making it overpriced for a buy-and-hold strategy. With a low yield of 1.4% and economic conditions influenced heavily by tourism, this property may not deliver the long-term appreciation needed to offset its high acquisition cost. Family rental At a listing price of €8,900,000, the villa is priced markedly higher than its fair value of €5,158,157, signifying it is overpriced for potential family rental purposes. The combination of a low gross yield of 1.4% and a neighborhood rating of 65/100 suggests limited appeal to family renters, further exacerbating the risk of investment in this property.
Tenant turnover risk With a tenant stability score of 65/100, there is an increased likelihood of tenant turnover, which may lead to vacancies and lost 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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