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, 2-bathroom house of 212 m², energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: This property includes annexes and a closed garage, offering versatile use and expansion potential, despite requiring significant interior maintenance to reach its full value.
The valuation. The asking price of €187,500 sits well below the fair value of €661,229, representing a substantial discount of €473,729 (252.7%). This property's current valuation deems it underpriced, offering potential for significant value appreciation.
Fair value modelled at €661,229 from the area baseline, adjusted for condition and location. Asking €187,500 sits €473,729 (252.7%) below — the upside to fair value.
Asking €187,500 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €762,564 (€3,597/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 35/100 (Condition 30 · Materials 36 · Room dimensions 40). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 60/100 (Housing Market 70 · Amenities 60 · Economic 50 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €762,564 + condition -€131,838 + location +€30,503 = modelled fair value of €661,229 (€3,119/m²), a €473,729 (252.7%) gap versus the €187,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · dee644 | Subject | €187,500 | €884 | — | 30 | 60 |
| Loulé (São Sebastião) · dee435 | Active | €395,000 | €2,669 | 201.8% | 25 | 73 |
| Loulé (São Sebastião) · ba5907 | Active | €131,000 | €2,183 | 146.9% | — | 64 |
| Loulé (São Sebastião) · 4a7f7f | Active | €725,000 | €3,021 | 241.6% | 70 | 61 |
| beco do Brotual S / N | Active | €579,000 | €2,373 | 168.3% | 70 | 74 |
| Median comp | €487,000 | €2,521 | 185.0% | 70 | 69 |
Short-term vacation rental The property presents an attractive opportunity for short-term vacation rentals, offering a significant gross yield of 17%, well-supported by the local tourist-driven economy. Given the gap of 252.7% to its fair value of €661,229, this investment is poised for substantial appreciation in a safe and appealing neighborhood. Long-term rental With a strong yield of 17%, this property also serves as a viable option for long-term rentals, especially given the demand from residents in a rural-urban mix that maintains economic stability. The price gap of 252.7% relative to fair value suggests the potential for impressive returns as the area experiences growth. Buy-and-hold This buy-and-hold strategy reflects immense potential, with the property significantly undervalued at €187,500 against a fair value of €661,229, indicating strong long-term capital appreciation prospects. Investing now allows for capitalizing on the ongoing development in the neighborhood, ensuring stability and growth in property value over time.
Economic Vulnerability The property's economic stability score of 50/100 suggests a significant risk of economic downturn, potentially affecting tenant demand and rental income streams.
