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, 0-bathroom house of 124 m², built in 1937. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property features a private rooftop terrace with unobstructed views of Loulé’s charming rooftops, enhancing its appeal for tranquil outdoor relaxation.
The valuation. The asking price of €290,000 is significantly below fair value, sitting at €109,423 (37.7%) underpriced. This presents an appealing opportunity for savvy investors looking to capitalize on the discrepancy. Buy-to-flip angle. With a condition score of 45/100, there is scope for renovations to modernize the property and capture a higher resale price in the growing Loulé market. The focus would be on strategic improvements that appeal to buyers seeking contemporary living. Buy-to-let angle. The projected gross yield of 8.1% translates to an estimated monthly rental income of €1,958, making this property an attractive option for long-term rental investment. Given its location in a tourist-reliant area, short-term vacation rentals could also prove lucrative.
Fair value modelled at €399,423 from the area baseline, adjusted for condition and location. Asking €290,000 sits €109,423 (37.7%) below — the upside to fair value.
Asking €290,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €373,488 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 45/100 (Condition 38 · Materials 45 · Room dimensions 55). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 57/100 (Housing Market 60 · Amenities 60 · Economic 50 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €373,488 + condition -€59,094 + location +€12,489 = modelled fair value of €399,423 (€3,221/m²), a €109,423 (37.7%) gap versus the €290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 6c7797 | Subject | €290,000 | €2,339 | — | 38 | 57 |
| Loulé (São Sebastião) · dee644 | Active | €187,500 | €884 | 62.2% | 30 | 60 |
| Loulé (São Sebastião) · 65a4c6 | Active | €220,000 | €7,097 | 203.4% | — | 72 |
| Loulé (São Sebastião) · ba5907 | Active | €131,000 | €2,183 | 6.6% | — | 64 |
| Loulé (São Sebastião) · dee435 | Active | €395,000 | €2,669 | 14.1% | 25 | 73 |
| Median comp | €203,750 | €2,426 | 3.7% | 28 | 68 |
Short-term vacation rental The property's significant 8.1% gross yield highlights its potential as a lucrative short-term vacation rental in the tourist-reliant Algarve region. Given its relatively low listing price of €290,000 compared to a fair value of €399,423, there is ample opportunity to capitalize on seasonal demand while offering an appealing stay for visitors. Buy-and-hold Investing in this property as a buy-and-hold strategy allows for strong appreciation potential, given its fair value significantly exceeds the listing price. With a gap of 37.7%, this asset is positioned well for long-term growth within a desirable tourism market. Value-add renovation The property’s condition score of 45/100 suggests room for improvement, making it an attractive candidate for a value-add renovation strategy. By investing in updates and enhancements, the property can not only increase its market value but also attract higher-paying short-term rentals in the scenic Algarve area.
Low Economic and Tenant Stability The scores of 50/100 for economic stability and 55/100 for tenant stability indicate potential volatility in rental income and property demand, reflecting risks in consistent occupancy and revenue generation.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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