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.
2-bedroom, 1-bathroom house of 148 m², energy rating F. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property includes a large plot of 1250m² with ancient trees, providing a peaceful setting perfect for creating an organic garden or play area while enjoying sea views.
The valuation. The asking price of €395,000 is notably lower than the fair value of €457,653, indicating that the property is underpriced by €62,653, or 15.9%, creating an attractive opportunity for potential investors. Buy-to-flip angle. With the house's condition rated at 25/100, a strategic buy-to-flip approach could involve renovating the outdated materials, aiming for a quick resale at a significant markup in this desirable Algarve location. Buy-to-let angle. The estimated rental income of around €2,041 per month offers a gross yield of 6.2%, making this property a suitable candidate for long-term buy-to-let investments, particularly in the tourist-driven market of Loulé.
Fair value modelled at €457,653 from the area baseline, adjusted for condition and location. Asking €395,000 sits €62,653 (15.9%) below — the upside to fair value.
Asking €395,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €445,776 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 25/100 (Condition 20 · Materials 30 · Room dimensions 30). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 69/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €445,776 + condition -€115,163 + location +€40,459 = modelled fair value of €457,653 (€3,092/m²), a €62,653 (15.9%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 6c7b49 | Subject | €395,000 | €2,669 | — | 20 | 69 |
| Loulé (São Sebastião) · dee644 | Active | €187,500 | €884 | 66.9% | 30 | 60 |
| Loulé (São Sebastião) · ba5907 | Active | €131,000 | €2,183 | 18.2% | — | 64 |
| Loulé (São Sebastião) · 65a4c6 | Active | €220,000 | €7,097 | 165.9% | — | 72 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 32.4% | 72 | 71 |
| Median comp | €203,750 | €2,859 | 7.1% | 51 | 68 |
Short-term vacation rental The property at €395,000 presents a compelling opportunity for short-term vacation rentals, especially given the 6.2% gross yield in a region that thrives on tourism. With a gap of 15.9% below fair value, this investment is positioned well to capitalize on seasonal demand, making it a strategically priced option in Loulé. Buy-and-hold As a buy-and-hold investment, this property benefits from its favourable gap to fair value of 15.9% and the stability provided by the coastal tourist economy of the Algarve. The property's location, combined with a reasonably assessed condition score of 25/100, suggests a long-term potential for appreciation while generating a consistent rental income. Family rental With a solid gross yield of 6.2%, this 2-bedroom house is well-placed to serve as a family rental in a desirable holiday region, aided by its fair value gap of 15.9%. While the condition may require attention, the neighborhood score of 69/100 indicates a viable environment for families, enhancing its rental appeal over time.
Economic Vulnerability The economic stability score of 55/100 indicates potential vulnerability to market fluctuations that could impact rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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