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, 4-bathroom house of 301 m², built in 1951, energy rating A. Located on estrada do Sobradinho, Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa also features a striking 50m² roof terrace with panoramic sea views, enhancing its appeal for outdoor leisure and entertainment.
The valuation. The asking price of €1,295,000 is above the fair value of €1,232,922, indicating a premium of €62,078 (4.8%). This property is considered overpriced based on current market conditions.
Fair value modelled at €1,232,922 from the area baseline, adjusted for condition and location. Asking €1,295,000 sits €62,078 (4.8%) above — overpriced versus fair value.
Asking €1,295,000 versus the estrada do Sobradinho area baseline of €906,612 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 (Condition 85 · Materials 90 · Room dimensions 88). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
estrada do Sobradinho
Area baseline €906,612 + condition +€37,625 + location +€112,600 = modelled fair value of €1,232,922 (€4,096/m²), a €62,078 (4.8%) gap versus the €1,295,000 asking price.
Short-term vacation rental Investing in this property for short-term vacation rental is not advisable as it is overpriced by 4.8% compared to its fair value. The gross yield of 4.2% does not compensate for the elevated initial investment, especially given the competition in the tourist-driven market of Algarve. Family rental The property’s listing price positions it at a disadvantage for family rental potential, with an overpriced valuation versus the fair market value. While the condition and neighborhood scores are reasonable, the financial metrics do not justify the investment in a segment with possibly better returns elsewhere. Buy-and-hold Considering a buy-and-hold strategy for this property is unwise due to its current overpriced status, which is 4.8% above fair value. The combination of a moderate yield and high listing price makes it a challenging long-term investment in a market where better opportunities may exist.
Economic Dependency Risk: With an economic stability score of 70/100, there is a moderate risk that economic downturns could impact property demand and rental income levels.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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