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, 3-bathroom house of 150 m², built in 2009, energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property features a commercial license and a multifunctional annex, providing excellent versatility for both residential and entrepreneurial opportunities in a desirable location.
The valuation. The asking price of €699,900 is significantly above the fair value of €585,019, showing an excess of €114,881 (16.4%). This property is considered overpriced based on current market conditions.
Fair value modelled at €585,019 from the area baseline, adjusted for condition and location. Asking €699,900 sits €114,881 (16.4%) above — overpriced versus fair value.
Asking €699,900 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €539,550 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €539,550 + condition -€6,328 + location +€51,797 = modelled fair value of €585,019 (€3,900/m²), a €114,881 (16.4%) gap versus the €699,900 asking price.
Long-term rental The property is overpriced at €699,900 compared to the fair value of €585,019, leading to a 16.4% gap. With a gross yield of only 2.5%, the long-term rental strategy is unlikely to provide satisfactory returns given the high initial investment. Short-term vacation rental Despite being located in a desirable area of the Algarve, the listing price of €699,900 makes this property overpriced against a fair valuation of €585,019. The expected yield of 2.5% gross does not justify the premium, limiting its attractiveness for short-term vacation rentals. Buy-and-hold The current listing of €699,900 for this property is above the fair value of €585,019, indicating it is overpriced by 16.4%. Such a valuation, combined with a gross yield of just 2.5%, suggests that a buy-and-hold strategy may not yield adequate returns in the long run. Not ideal for Student housing, as the property is priced above fair value and does not cater effectively to the student demographic in the area.
Potential Tenant Turnover The tenant stability score of 70/100 indicates a moderate risk of potential turnover, which could affect cash flow and occupancy rates.
