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.
8-bedroom, 10-bathroom house of 989 m², built in 2012, energy rating A. Located on rua Cravo da Índia S / N, Quarteira parish, Loulé municipality, Faro district. This property features advanced home automation with integrated smart technology for security, lighting, and climate control, enhancing both convenience and luxury living.
The valuation. The asking price of €12,500,000 is significantly above the fair value of €5,092,519, resulting in an inflated premium of €7,407,481 (59.3%). Verdict: overpriced. Buy-to-flip angle. A resale strategy may be challenging due to the current asking price, making it less appealing for quick flips, as the market likely won't support such a high valuation. Buy-to-let angle. With a gross yield of 0%, the rental income approach appears unsustainable; therefore, this property may not generate sufficient cash flow for long-term holding without significant adjustments to its pricing strategy.
Fair value modelled at €6,725,200 from 5 comparable sales in the area. Asking €12,500,000 sits €5,774,800 (85.9%) above — overpriced versus fair value.
Asking €12,500,000 versus the rua Cravo da Índia S / N area baseline of €6,262,877 (€6,333/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €6,262,877, adjusted for condition and micro-location, gives a modelled fair value of €6,725,200 (€6,800/m²), a €5,774,800 (85.9%) gap versus the €12,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Cravo da Índia S / N | Subject | €12,500,000 | €12,639 | — | 94 | 70 |
| Quarteira · 38b57e | Active | €12,500,000 | €13,326 | 5.4% | 92 | 71 |
| Quarteira · 583346 | Active | €2,900,000 | €5,800 | 54.1% | 76 | — |
| caminho do Zambujal | Active | €3,400,000 | €6,800 | 46.2% | 90 | 66 |
| caminho Vale do Covo | Active | €4,450,000 | €5,626 | 55.5% | 88 | 74 |
| Median comp | €3,925,000 | €6,300 | 50.2% | 89 | 71 |
Short-term vacation rental The property is significantly overpriced at €12,500,000, with a fair value of only €5,092,519, representing a 59.3% discrepancy. Given the 0% yield in a tourism-driven market like Algarve, the potential for return on investment through short-term rentals is minimal and unattractive. Buy-and-hold Despite the property’s excellent condition rating of 91/100, the substantial gap from fair value suggests it would not be a wise buy-and-hold investment at its current price. The lack of any yield also underlines the unappealing prospect of holding onto a property that is overpriced at €12,500,000. Family rental The high listing price of €12,500,000 indicates that the property is overpriced relative to its fair value of €5,092,519, creating barriers for potential family renters. The average neighborhood score of 70/100 and the lack of international schools may further limit family appeal while still making the investment riskier at this price point.
Economic Dependence Risk: With an economic stability score of 65/100, there is a significant risk that fluctuations in the local economy could negatively impact rental income and overall property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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