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, 0-bathroom country_house of 120 m², built in 1989, energy rating F. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property features an expansive 36,927 m² of land with exceptional potential for glamping or rural tourism development, directly across from the luxury Ombria Algarve resort.
The valuation. The asking price of €700,000 sits significantly above the fair value of €466,124, indicating that this property is overpriced by €233,876 or 33.4%. This substantial premium suggests potential investors should approach with caution.
Fair value modelled at €466,124 from the area baseline, adjusted for condition and location. Asking €700,000 sits €233,876 (33.4%) above — overpriced versus fair value.
Asking €700,000 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 81/100 (Condition 78 · Materials 82 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 72 · Amenities 60 · Economic 65 · Tenant Quality 58). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €361,440 + condition +€10,313 + location +€24,172 = modelled fair value of €466,124 (€3,884/m²), a €233,876 (33.4%) gap versus the €700,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 4a8228 | Subject | €700,000 | €5,833 | — | 78 | 64 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 39.4% | 72 | 71 |
| Loulé (São Sebastião) · cfe1d2 | Active | €1,750,000 | €6,679 | 14.5% | 90 | 70 |
| Loulé (São Clemente) · 4a7e16 | Active | €298,000 | €5,960 | 2.2% | 76 | 73 |
| Loulé (São Clemente) · 956a5e | Active | €520,000 | €5,000 | 14.3% | — | 74 |
| Median comp | €574,500 | €5,480 | 6.1% | 76 | 72 |
Short-term vacation rental This property, priced at €700,000, exceeds its fair value by 33.4%, indicating a significant overvaluation that could hinder profitability in the competitive vacation rental market. With a low gross yield of 2.5% and a neighborhood score of 64/100, it is not positioned for strong short-term rental performance. Buy-and-hold Although the location in the Algarve could provide some long-term capital appreciation, the current valuation of €700,000, which is over 33% above fair value, raises concerns about potential return on investment. The gross yield of only 2.5% further suggests that this buy-and-hold strategy may not be the best option for generating reliable income. Family rental With property prices being a significant factor, the €700,000 asking price reflects a 33.4% premium over the fair value, making it less appealing for families looking for value in rental accommodations. The combination of low yield at 2.5% and the neighborhood's moderate rating of 64/100 points to a lack of competitive advantage for family renters in this market.
Economic Vulnerability The combined economic stability score of 65 and tenant stability score of 58 indicates potential challenges in maintaining consistent rental income and property value.
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