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.
3-bedroom, 2-bathroom house of 119 m², built in 2006, energy rating A. Located on rua da Fábrica, Loulé (São Clemente) parish, Loulé municipality, Faro district. The property includes an expansive outdoor terrace perfect for entertaining, along with energy-efficient windows that enhance natural light and reduce utility costs.
The valuation. The asking price of €675,000 is significantly above the fair value of €465,959, indicating the property is overpriced by €209,041 (31.0%). Prospective buyers should approach with caution.
Fair value modelled at €465,959 from the area baseline, adjusted for condition and location. Asking €675,000 sits €209,041 (31.0%) above — overpriced versus fair value.
Asking €675,000 versus the rua da Fábrica area baseline of €367,472 (€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 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 60 · Amenities 70 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
rua da Fábrica
Area baseline €367,472 + condition +€13,945 + location +€23,970 = modelled fair value of €465,959 (€3,916/m²), a €209,041 (31.0%) gap versus the €675,000 asking price.
Short-term vacation rental The property offers a gross yield of 4.3%, which is relatively modest compared to the required price of €675,000. Given that the property is deemed overpriced with a fair value of €465,959, the potential profitability for short-term rentals is diminished. Buy-and-hold Acquiring this property at €675,000 does not align with the estimated fair value of €465,959, indicating a 31.0% gap that negatively impacts long-term investment returns. Thus, while the property is situated near tourist attractions, the ongoing expenses may outweigh the financial benefits in a buy-and-hold strategy. Family rental Although the property is suitable for family rental given its size and condition score of 83/100, the considerable valuation gap suggests it is overpriced at €675,000. Consequently, finding reliable tenants may be challenging as the yield of 4.3% does not sufficiently justify the investment cost for long-term residential use.
Low Economic Growth Risk The economic stability score of 55/100 suggests an underlying risk of low economic growth, potentially impacting tenant demand and rental income viability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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