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.
9-bedroom, 7-bathroom house of 364 m², built in 2017, energy rating D. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This property offers two villas with active Local Accommodation licenses that have demonstrated high occupancy rates, making it an attractive investment opportunity in the Algarve market.
The valuation. The asking price of €2,400,000 is significantly above the fair value of €1,432,016, indicating an overprice of €967,984 (40.3%). This discrepancy suggests the property may not provide a solid investment opportunity at the current listing price.
Fair value modelled at €1,432,016 from the area baseline, adjusted for condition and location. Asking €2,400,000 sits €967,984 (40.3%) above — overpriced versus fair value.
Asking €2,400,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €1,124,032 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 75 · Amenities 60 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Clemente), Loulé, Faro
Area baseline €1,124,032 + condition +€28,438 + location +€94,270 = modelled fair value of €1,432,016 (€3,934/m²), a €967,984 (40.3%) gap versus the €2,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 23f28d | Subject | €2,400,000 | €6,593 | — | 78 | 68 |
| Almancil · 6d5135 | Active | €1,995,000 | €5,955 | 9.7% | 84 | 70 |
| Loulé (São Clemente) · 4d4204 | Active | €4,995,000 | €7,411 | 12.4% | 92 | 73 |
| Loulé (São Clemente) · 956c26 | Active | €4,995,000 | €7,411 | 12.4% | 95 | 72 |
| Loulé (São Clemente) · 25f849 | Active | €1,395,000 | €7,971 | 20.9% | 78 | 61 |
| Median comp | €3,495,000 | €7,411 | 12.4% | 88 | 71 |
Short-term vacation rental The property’s pricing exceeds fair value by 40.3%, which significantly undermines its appeal as a short-term vacation rental investment. With a gross yield of 0%, the anticipated income potential cannot justify the current listing price in a market focused on tourists and seasonal renters. Buy-and-hold Given the property is priced at €2,400,000, which is substantially above its fair value of €1,432,016, this buy-and-hold strategy becomes less attractive for generating long-term returns. The lack of price appreciation potential paired with the notably low yield indicates that holding this property may lead to financial strain rather than gains. Long-term rental Although Loulé has appeal for long-term rental in a tourist-centric region, the property is overpriced at 40.3% above fair value, diminishing its viability for consistent rental income. The current listing sits uncomfortably with an economic environment where the expected yield is entirely absent, creating a mismatch for long-term rental investors.
Economic and Tenant Instability With both the economic stability and tenant stability scores at 65/100, there is a risk of decreased demand and potential fluctuations in rental income if local economic conditions worsen.
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
