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.
5-bedroom, 7-bathroom house of 359 m², built in 2006, energy rating C. Located on rua Vale de Ungel S / N, Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This villa boasts a private basketball court and dedicated playground, providing diverse recreational options for family and guests within the expansive gardens. Energy Rating: C
The valuation. The asking price of €2,495,000 is significantly above the fair value of €1,470,496, exceeding it by €1,024,504 (41.1%). This property is therefore considered overpriced. Buy-to-flip angle. The resale strategy focuses on capitalizing on the affluent luxury market by renovating and marketing the property to attract buyers at a higher price point after a short holding period. Buy-to-let angle. With an estimated gross yield of 3.9%, the rental income strategy is geared towards leveraging the high tourist demand for short-term vacation rentals in the area to generate steady monthly income of approximately €8,109.
Fair value modelled at €1,470,496 from the area baseline, adjusted for condition and location. Asking €2,495,000 sits €1,024,504 (41.1%) above — overpriced versus fair value.
Asking €2,495,000 versus the rua Vale de Ungel S / N area baseline of €1,108,592 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
rua Vale de Ungel S / N
Area baseline €1,108,592 + condition +€44,875 + location +€134,298 = modelled fair value of €1,470,496 (€4,096/m²), a €1,024,504 (41.1%) gap versus the €2,495,000 asking price.
Short-term vacation rental Given the location's popularity with tourists, this 5-bed property could initially seem appealing for short-term vacation rentals, yet its current price reflects a significant 41.1% premium over fair value. The 3.9% gross yield also indicates a lukewarm return for investors in this seasonally fluctuating market. Buy-and-hold Investing in this property as a buy-and-hold strategy becomes challenging, as it is overpriced by 41.1% against its fair value, limiting potential appreciation. With a condition rating of 83/100 and a neighbourhood rating of 76/100, this property may provide a decent living experience, but the high purchase cost dampens its long-term investment viability. Luxury market Although positioned in a desirable area, this property is not ideally suited for the luxury market due to its considerable 41.1% gap from fair value, suggesting that it is overpriced. The mix of commendable amenities and competitive neighbourhood ratings do not compensate for the inflated price, making a luxury investment here questionable.
Economic Vulnerability With an economic stability score of 65/100, there is a heightened risk of market fluctuations impacting the property's value and rental demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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