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.
5-bedroom, 7-bathroom villa of 674 m², built in 2025, energy rating A. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. This property features a state-of-the-art home automation system and a luxurious basement designed for entertainment, complete with a cinema room and a well-stocked wine cellar.
The valuation. The asking price of €4,995,000 is significantly above its fair value of €2,731,671, creating an excess of €2,263,329 (45.3%). Verdict: overpriced.
Fair value modelled at €2,731,671 from the area baseline, adjusted for condition and location. Asking €4,995,000 sits €2,263,329 (45.3%) above — overpriced versus fair value.
Asking €4,995,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €2,081,312 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 90/100 (Condition 92 · Materials 95 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Clemente), Loulé, Faro
Area baseline €2,081,312 + condition +€84,250 + location +€223,043 = modelled fair value of €2,731,671 (€4,053/m²), a €2,263,329 (45.3%) gap versus the €4,995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 4d4204 | Subject | €4,995,000 | €7,411 | — | 92 | 73 |
| estrada de Vale de Éguas | Active | €2,500,000 | €6,173 | 16.7% | 88 | 74 |
| Loulé (São Clemente) · 0014cb | Active | €2,500,000 | €6,173 | 16.7% | 80 | 63 |
| caminho das Andorinhas | Active | €2,295,000 | €10,066 | 35.8% | 82 | 75 |
| Loulé (São Clemente) · 96c525 | Active | €1,950,000 | €7,249 | 2.2% | 85 | 62 |
| Median comp | €2,397,500 | €6,711 | 9.4% | 84 | 69 |
Short-term vacation rental: Given the property’s pricing significantly above its fair value of €2,731,671, it fails to present a sound investment for short-term vacation rentals, especially with a gross yield of 0%. Additionally, despite being located in a tourist-friendly area, the high acquisition cost does not align with the expected rental income potential. Long-term rental: The villa's overpricing at €4,995,000 compared to its fair market value means investors should approach long-term rentals cautiously, as the potential returns are not justified against the 0% yield. Ultimately, this property is better positioned for buyers focused elsewhere, as the long-term rental market will not support this premium price. Buy-and-hold: With a staggering gap of 45.3% from the fair value, investing in this villa as a buy-and-hold strategy is unlikely to yield favorable returns in the near term. Therefore, the inflated price makes it unappealing for a long-term investment, given the stagnant yield and the current market climate.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic fluctuations that could negatively impact tenant demand and rental income.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
