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, 2-bathroom house of 137 m², built in 1951, energy rating F. Located Salir parish, Loulé municipality, Faro district. Noteworthy Features: The property includes a covered terrace with a fireplace, perfect for outdoor entertaining, and features pre-installation for a pool, enhancing its future recreational potential.
The valuation. The asking price of €275,000 is significantly below the fair value of €497,008, presenting an attractive opportunity for investors who recognize its submarket potential. The property is underpriced by €222,008, or 80.7%, making it an appealing acquisition.
Fair value modelled at €497,008 from the area baseline, adjusted for condition and location. Asking €275,000 sits €222,008 (80.7%) below — the upside to fair value.
Asking €275,000 versus the Salir, Loulé, Faro area baseline of €182,895 (€1,335/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 (Condition 70 · Materials 65 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 75 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Salir, Loulé, Faro
Area baseline €182,895 + condition -€21,406 + location +€25,625 = modelled fair value of €497,008 (€3,628/m²), a €222,008 (80.7%) gap versus the €275,000 asking price.
Short-term vacation rental The property in Salir, Loulé, presents an appealing opportunity for the short-term vacation rental market, particularly given its proximity to the Algarve coast and a fair value assessment indicating a significant gap. With a fair value of €497,008 compared to the listing price of €275,000, there is strong potential for generating high occupancy rates in light of increasing tourist demand. Long-term rental Given the house's valuation potential, investing for long-term rental is a strategically sound choice, particularly in a region where economic stability relies heavily on tourism. A fair value of €497,008 compared to the current listing price suggests that, although gross yield stands at 0%, the long-term rental possibilities may present significant appreciation over time. Buy-and-hold As a buy-and-hold investment, this property stands out due to its substantial undervaluation against fair market value, indicating potential for growth as the tourism sector stabilizes and expands. With its current listing price of €275,000 and a fair value of €497,008, the house offers prospective investors the chance to capitalize on an appreciating asset within a desirable location.
Economic Vulnerability With an economic stability score of 55/100, there is a significant risk that local economic downturns could negatively impact property value and rental income potential.**
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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