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 354 m², built in 2009, energy rating B. Located on rua Dom Afonso Henriques, Loulé (São Clemente) parish, Loulé municipality, Faro district. This villa features a lower-ground cinema room and a spacious game room with a bar, providing ample entertainment options for residents and guests alike.
The valuation. The asking price of €1,695,000 exceeds the fair value of €1,388,457 by €306,543 (18.1%). This property is considered overpriced given the current market conditions.
Fair value modelled at €1,388,457 from the area baseline, adjusted for condition and location. Asking €1,695,000 sits €306,543 (18.1%) above — overpriced versus fair value.
Asking €1,695,000 versus the rua Dom Afonso Henriques area baseline of €1,093,152 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 80 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua Dom Afonso Henriques
Area baseline €1,093,152 + condition +€38,719 + location +€76,400 = modelled fair value of €1,388,457 (€3,922/m²), a €306,543 (18.1%) gap versus the €1,695,000 asking price.
Short-term vacation rental Despite being situated in a tourist-heavy region, the property is overpriced at €1,695,000 with a fair value of €1,388,457, showing an 18.1% gap. This pricing, coupled with a modest gross yield of 4.2%, suggests that short-term rental returns will not meet investor expectations. Long-term rental The property’s high listing price makes it less attractive for long-term rental strategies, as the potential yield of 4.2% does not justify the initial investment of €1,695,000. With the local neighborhood rated only 65/100, tenant quality may be inconsistent, further complicating long-term rental viability. Buy-and-hold Investing in this property as a buy-and-hold strategy is challenging given its overpricing at €1,695,000 compared to the fair value of €1,388,457. The low yield and average neighborhood score indicate that appreciating returns will struggle to compensate for the initial cost, leading to potentially poor long-term performance.
Economic and Tenant Instability Risk A score of 60 in both economic stability and tenant stability indicates a moderate risk of revenue fluctuations and potential tenant turnover, which could impact long-term financial performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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