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, 3-bathroom villa of 132 m². Located Quarteira parish, Loulé municipality, Faro district. Noteworthy Features: The property includes a cozy fireplace in the lounge and a large south-facing terrace, perfect for outdoor relaxation and entertaining year-round.
The valuation. The asking price of €720,000 is significantly above the fair value of €493,764, resulting in an overvaluation of €226,236 (31.4%). This property is overpriced and requires negotiation or reconsideration of the investment. Buy-to-flip angle. The buy-to-flip strategy involves renovations to increase the property’s appeal, aiming for a resale at a higher price in the competitive Quarteira market. This approach banks on capitalizing on seasonal tourism demand. Buy-to-let angle. The rental income strategy focuses on short-term vacation rentals, targeting the Algarve's tourist population. With an estimated gross yield of 3.7%, the potential monthly income of €2,220 provides steady cash flow for this investment.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Quarteira · ba57dc | Subject | €720,000 | €5,455 | — | — | 64 |
| rua das Avelãs | Active | €720,000 | €4,865 | 10.8% | 72 | 70 |
| caminho das Searas, 54 | Active | €1,590,000 | €5,638 | 3.4% | — | 64 |
| Quarteira · 9374f6 | Active | €519,000 | €5,966 | 9.4% | — | 62 |
| Quarteira · 99f3ae | Active | €750,000 | €4,902 | 10.1% | 73 | 73 |
| Median comp | €735,000 | €5,270 | 3.4% | 73 | 67 |
Short-term vacation rental This property is overpriced, with a significant gap of 31.4% between the listing price and fair value, which raises concerns about its potential for profitability in the seasonal tourism market. The gross yield of 3.7% further indicates a lack of attractive returns for a vacation rental, making it a less favorable investment despite its location in the Algarve region. Family rental While family rentals can provide stable income, this villa is overpriced, presenting a significant valuation gap that diminishes its appeal as a long-term residential option. The current condition rating of 0/100 suggests that substantial investment would be required to make this property suitable for families, weighing against the potential returns in a competitive rental market. Buy-and-hold Despite the location in a desirable tourist area, purchasing this property as a buy-and-hold investment is not advisable due to its overvaluation relative to fair market value. The property’s 3.7% gross yield along with its unsatisfactory condition signifies that it may not generate sufficient capital appreciation or rental income to justify its current price point.
Market Sensitivity Risk With a combined economic stability score of 55 and tenant stability score of 60, the property may be vulnerable to economic downturns or fluctuations, potentially leading to lower rental income or higher vacancy rates.
