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.
4-bedroom, 5-bathroom house of 120 m², energy rating A+. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. The property is set on a sprawling 34,000 m² plot that offers unparalleled privacy and panoramic views of the Algarve hills and ocean.
The valuation. The asking price of €3,300,000 significantly exceeds the fair value of €481,171, marking an overpriced status with a deviation of €2,818,829 (85.4%). This property does not present an appealing investment opportunity based on these valuations.
Fair value modelled at €481,171 from the area baseline, adjusted for condition and location. Asking €3,300,000 sits €2,818,829 (85.4%) above — overpriced versus fair value.
Asking €3,300,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €361,440 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 (Condition 85 · Materials 90 · Room dimensions 88). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €361,440 + condition +€15,000 + location +€34,531 = modelled fair value of €481,171 (€4,010/m²), a €2,818,829 (85.4%) gap versus the €3,300,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 4a7dfc | Subject | €3,300,000 | €27,500 | — | 85 | 70 |
| estrada do Sobradinho | Active | €1,295,000 | €4,302 | 84.4% | 85 | 76 |
| Loulé (São Sebastião) · 6d54b0 | Active | €2,500,000 | €6,720 | 75.6% | 82 | 59 |
| Loulé (São Clemente) · 0014cb | Active | €2,500,000 | €6,173 | 77.6% | 80 | 63 |
| Loulé (São Sebastião) · 956ee6 | Active | €1,450,000 | €3,616 | 86.9% | 68 | 73 |
| Median comp | €1,975,000 | €5,238 | 81.0% | 81 | 68 |
Short-term vacation rental The current listing price of €3,300,000 far exceeds the fair value of €481,171, indicating that this property is overpriced for a short-term vacation rental strategy. The gross yield of 1.1% is insufficient to justify the substantial investment in a market primarily driven by tourism. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable, given the considerable gap of 85.4% from its fair value of €481,171 and the low rental yield of 1.1%. Long-term appreciation is unlikely to remedy this overpricing relative to the broader economic reliance on tourism in the Algarve. Family rental With a significant price of €3,300,000 and a fair value of only €481,171, this property is overpriced for potential family rental purposes. Furthermore, the low gross yield of 1.1% does not make it an attractive option for families seeking rental stability in the area.
Economic Vulnerability The economic stability score of 65/100 indicates potential fluctuations in the local economy that could affect rental income and property value negatively.
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