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.
2-bedroom, 1-bathroom house of 148 m², energy rating F. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The property includes the potential for a rooftop terrace with a pergola and jacuzzi to maximize sea views, along with a large rustic plot—ideal for organic gardening or peaceful relaxation.
The valuation. The asking price of €395,000 is significantly below the fair value of €473,339, representing an attractive discount of €78,339 (19.8%). This positioning makes it a compelling opportunity for buyers seeking below market value investments.
Fair value modelled at €473,339 from the area baseline, adjusted for condition and location. Asking €395,000 sits €78,339 (19.8%) below — the upside to fair value.
Asking €395,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €532,356 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 28/100 (Condition 25 · Materials 30 · Room dimensions 35). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €532,356 + condition -€107,994 + location +€48,977 = modelled fair value of €473,339 (€3,198/m²), a €78,339 (19.8%) gap versus the €395,000 asking price.
Short-term vacation rental This property presents a strong opportunity as a short-term vacation rental, given the 6.2% gross yield and 19.8% gap versus fair value of €473,339. Its location in the Algarve region ensures a steady influx of tourists seeking accommodations, particularly during peak seasons. Long-term rental With a favorable gross yield of 6.2%, this property is well-suited for long-term rental, leveraging the current gap of 19.8% against its fair value. The neighborhood's solid rating of 73/100 suggests a demand for long-term residents, enhancing the potential profitability. Buy-and-hold Acquiring this property as a buy-and-hold investment aligns well with its fair value gap of 19.8% and a gross yield of 6.2%, indicating possible appreciation over time. The combination of its location in a tourist-friendly area and reasonable condition makes it a strategic investment for future market upswing.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that could affect rental income.
