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 409 m², built in 1951, energy rating C. Located on rua Manuel da Luz Afonso, 46, Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This villa features a glass-enclosed interior terrace perfect for year-round leisure and a spacious outdoor area that includes a barbecue kitchen and private swimming pool.
The valuation. The asking price of €675,000 is significantly below fair value, which stands at €1,068,377, representing a difference of €393,377 (58.3%). This property is clearly underpriced, presenting a compelling opportunity for investors.
Long-term rental This property presents an attractive opportunity for long-term rental, given its fair value significantly higher than the listing price, which translates to a 7.9% gross yield. The neighbourhood's rating of 63/100 suggests a decent quality of tenants, contributing to steady rental income in a location bolstered by Algarve's tourism economy. Short-term vacation rental With a considerable gap of 58.3% between the listing price and the fair value, the 3-bed villa is positioned well for short-term vacation rentals that leverage the area's appeal to tourists. Despite its current condition rating of 0/100, the property offers substantial potential for high occupancy rates in a popular destination like Loulé. Buy-and-hold Investing in this villa as a buy-and-hold strategy is promising, considering the strong fair value indication that suggests significant appreciation potential over time. The robust tourism-driven demand in the Algarve region further supports a long-term investment approach with favorable returns despite the current condition of the property.
Economic and Tenant Volatility With both economic and tenant stability scores at 65/100, there is a notable risk of fluctuations in occupancy rates and rental income, potentially impacting cash flow stability and property value.
