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, 3-bathroom villa of 184 m², built in 2001, energy rating B. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Feature: The property includes a fully legalized heated pool equipped with a retractable thermal cover, enhancing outdoor enjoyment year-round with energy-efficient design improvements.
The valuation. The asking price of €895,000 exceeds the fair value of €713,286 by €181,714, indicating an overvaluation of 20.3%. This price does not align with current market conditions. Buy-to-flip angle. The strategy of flipping this villa would involve renovating and marketing it towards high-income buyers, leveraging its high-quality finishes and desirable location for a potentially quick resale. Buy-to-let angle. The villa's estimated gross yield of 2.7% at €2,014 monthly rental would attract long-term tenants, particularly families looking for high-quality living in a touristic area, providing stable cash flow.
Fair value modelled at €713,286 from the area baseline, adjusted for condition and location. Asking €895,000 sits €181,714 (20.3%) above — overpriced versus fair value.
Asking €895,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €568,192 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 76 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Clemente), Loulé, Faro
Area baseline €568,192 + condition +€14,375 + location +€37,063 = modelled fair value of €713,286 (€3,877/m²), a €181,714 (20.3%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 9387a2 | Subject | €895,000 | €4,864 | — | 76 | 64 |
| estrada municipal 520 | Active | €890,000 | €3,836 | 21.1% | 75 | 54 |
| Santa Bárbara de Nexe · 956c00 | Active | €999,500 | €5,316 | 9.3% | 75 | 67 |
| Loulé (São Clemente) · 6eba13 | Active | €1,400,000 | €7,650 | 57.3% | 82 | 62 |
| São Brás de Alportel · 25f63e | Active | €875,000 | €4,972 | 2.2% | 80 | 59 |
| Median comp | €944,750 | €5,144 | 5.8% | 78 | 61 |
Short-term vacation rental The 3-bed villa in Loulé, listed at €895,000, presents a significant gap of 20.3% compared to its fair value of €713,286, indicating it is overpriced for a vacation rental strategy. With a gross yield of only 2.7%, the investment may not generate sufficient returns in the competitive Algarve tourism market. Buy-and-hold Investing in this villa for a buy-and-hold strategy appears unwise due to its overpriced status, significantly above its fair value of €713,286. The 2.7% yield fails to justify the premium paid and may hinder long-term appreciation in a market influenced by economic fluctuations. Family rental As a family rental, this property is overpriced at €895,000, with a notable 20.3% gap from its fair valuation of €713,286. The low condition score of 80/100 and a mediocre neighborhood rating of 64/100 may further deter potential tenants in a sensitive rental market.
Economic Vulnerability The economic stability score of 60 suggests potential fluctuations in the local market that could affect rental income and property value.
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