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 villa of 228 m², built in 2002, energy rating B. Located on caminho das Andorinhas, Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: The villa's heating system includes underfloor heating for year-round comfort and a dedicated barbecue area for outdoor entertaining with breathtaking coastal views.
The valuation. The asking price of €2,295,000 is significantly above fair value at €930,628, exceeding it by €1,364,372 (59.4%). This property is overpriced based on the current market conditions.
Fair value modelled at €930,628 from the area baseline, adjusted for condition and location. Asking €2,295,000 sits €1,364,372 (59.4%) above — overpriced versus fair value.
Asking €2,295,000 versus the caminho das Andorinhas area baseline of €704,064 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 82 · Materials 87 · Room dimensions 83). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
caminho das Andorinhas
Area baseline €704,064 + condition +€28,500 + location +€82,012 = modelled fair value of €930,628 (€4,082/m²), a €1,364,372 (59.4%) gap versus the €2,295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho das Andorinhas | Subject | €2,295,000 | €10,066 | — | 82 | 75 |
| autoestrada EM520-1, 340 | Active | €2,250,000 | €4,611 | 54.2% | 85 | 72 |
| Loulé (São Clemente) · 96c525 | Active | €1,950,000 | €7,249 | 28.0% | 85 | 62 |
| rua Dom Afonso Henriques | Active | €1,695,000 | €4,788 | 52.4% | 80 | 65 |
| Almancil · 6fbc09 | Active | €2,400,000 | €7,164 | 28.8% | 82 | 73 |
| Median comp | €2,100,000 | €5,976 | 40.6% | 84 | 69 |
Short-term vacation rental The 4-bed villa in Loulé is currently overpriced at €2,295,000, presenting a significant gap of 59.4% compared to its fair value of €930,628. With a low yield of 2.1% and factors such as seasonal employment affecting stability, pursuing short-term vacation rentals is likely to hinder returns and investor confidence. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to its current overpricing and a fair value that indicates a 59.4% premium. The 2.1% gross yield fails to justify the investment, especially given market volatility in Algarve and reliance on tourism. Family rental The villa struggles as a viable family rental option due to its overpriced listing of €2,295,000, which is 59.4% above fair value at €930,628. Coupled with a modest yield of 2.1% and the influence of seasonal tourism, this property may not attract long-term tenants, impacting rental income stability.
Economic Sensitivity The property has an economic stability score of 70/100, indicating a moderate risk of economic downturns affecting tenant income and occupancy rates.
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