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, 4-bathroom house of 245 m², built in 2002, energy rating B. Located Almancil parish, Loulé municipality, Faro district. The property features an independent leisure area with a complete kitchen and barbecue, perfect for year-round gatherings beside the heated saltwater pool.
The valuation. The asking price of €1,100,000 sits €324,405 (29.5%) below the fair value of €1,424,405, indicating the property is underpriced relative to its true market potential. Buy-to-flip angle. A buy-to-flip strategy would capitalize on the underpricing by renovating or enhancing certain features, potentially enabling resale at a margin above the fair market value. Buy-to-let angle. The estimated rental income of €3,483 per month yields a gross return of 3.8%, making it a viable option for long-term rental or short-term vacation rental strategies in the tourist-oriented Algarve region.
Fair value modelled at €1,424,405 from the area baseline, adjusted for condition and location. Asking €1,100,000 sits €324,405 (29.5%) below — the upside to fair value.
Asking €1,100,000 versus the Almancil, Loulé, Faro area baseline of €1,382,535 (€5,643/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 54/100 (Housing Market 60 · Amenities 55 · Economic 45 · Tenant Quality 50). Strong amenities and housing-market momentum support a premium to baseline.
Almancil, Loulé, Faro
Area baseline €1,382,535 + condition +€28,711 + location +€21,979 = modelled fair value of €1,424,405 (€5,814/m²), a €324,405 (29.5%) gap versus the €1,100,000 asking price.
Long-term rental The 4-bed house in Almancil presents an attractive investment opportunity for long-term rental, given its fair value assessment of €1,424,405 compared to the listing price of €1,100,000, resulting in a notable gap of 29.5%. Despite a gross yield of 3.8%, the condition rating of 83/100 suggests that this property is well-maintained and desirable for tenants seeking longer leases in this primarily tourism-driven area. Short-term vacation rental This property is ideal for short-term vacation rentals, taking advantage of the significant price disparity of 29.5% below fair value while boasting a solid condition score of 83/100. The property’s location in the Algarve aligns well with seasonal tourism, potentially leading to strong occupancy rates and a resilient income stream. Not ideal for student housing With a neighborhood rating of 54/100, this 4-bed house is not suitable for student housing investment, as the area lacks the necessary amenities and vibrant environment typically sought by students. Additionally, the seasonal nature of the local economy may not support sustained demand throughout the academic year. Not ideal for luxury market The house does not fit the luxury market segment due to its location being less central than Faro and a neighbourhood rating of 54/100, indicating lower desirability in that tier. Furthermore, the property's characteristics and yield profile are more aligned with the mid-range market rather than high-end luxury clientele.
Economic and Tenant Stability Risk The combined stability scores of 45/100 for economic factors and 50/100 for tenant factors suggest potential instability in rental income and 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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