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 183 m², built in 2019, energy rating B. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: The villa includes a heated saltwater pool and large double-glazed windows that enhance both energy efficiency and the panoramic sea views from the elevated position.
The valuation. The asking price of €1,400,000 is significantly above the fair value of €712,722, representing an overvaluation of €687,278 (49.1%). Given this disparity, the property is not positioned as a sound investment option.
Fair value modelled at €712,722 from the area baseline, adjusted for condition and location. Asking €1,400,000 sits €687,278 (49.1%) above — overpriced versus fair value.
Asking €1,400,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €565,104 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 (Condition 82 · Materials 88 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Clemente), Loulé, Faro
Area baseline €565,104 + condition +€22,875 + location +€31,596 = modelled fair value of €712,722 (€3,895/m²), a €687,278 (49.1%) gap versus the €1,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 6eba13 | Subject | €1,400,000 | €7,650 | — | 82 | 62 |
| estrada municipal 520 | Active | €890,000 | €3,836 | 49.9% | 75 | 54 |
| Santa Bárbara de Nexe · 4b99cc | Active | €995,000 | €5,293 | 30.8% | 75 | 69 |
| Loulé (São Clemente) · 0014cb | Active | €2,500,000 | €6,173 | 19.3% | 80 | 63 |
| Loulé (São Clemente) · ba3fc6 | Active | €1,950,000 | €5,462 | 28.6% | 75 | 73 |
| Median comp | €1,472,500 | €5,378 | 29.7% | 75 | 66 |
Short-term vacation rental The property is overpriced at €1,400,000, especially considering that the estimated fair value is only €712,722, presenting a 49.1% gap. With a gross yield of just 1.7%, it is unlikely to generate sufficient income in a highly seasonal market like Faro. Buy-and-hold Investing in this villa for the long-term is not advisable, as it is valued significantly above its fair value at €1,400,000 compared to the €712,722 fair value estimate. The 1.7% gross yield does not justify the investment when market fundamentals suggest diminished potential for appreciation. Long-term rental The 4-bed villa is not a financially sound long-term rental investment due to its overpriced listing of €1,400,000 against the fair value of €712,722, leading to a concerning 49.1% gap. The income generated from a 1.7% gross yield would be insufficient to cover expenses and provide a decent return in the current Algarve rental market.
Economic vs. Tenant Risk: With both economic stability and tenant stability scores at 60/100, there is a moderate risk of financial instability affecting rental income, potentially leading to lower cash flow or increased vacancy rates as the market responds to these scores.
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