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, 4-bathroom villa of 325 m², built in 2005, energy rating B. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa features a stunning rooftop terrace perfect for entertaining while offering panoramic sea views, complemented by professionally landscaped gardens surrounding a spacious south-facing pool area.
The valuation. The asking price of €1,629,000 is €356,424 (21.9%) above the fair value of €1,272,576, indicating the property is overpriced.
Fair value modelled at €1,272,576 from the area baseline, adjusted for condition and location. Asking €1,629,000 sits €356,424 (21.9%) above — overpriced versus fair value.
Asking €1,629,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €978,900 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 82). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 64/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €978,900 + condition +€38,086 + location +€65,465 = modelled fair value of €1,272,576 (€3,916/m²), a €356,424 (21.9%) gap versus the €1,629,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 9116c6 | Subject | €1,629,000 | €5,012 | — | 80 | 64 |
| Loulé (São Sebastião) · 956ee6 | Active | €1,450,000 | €3,616 | 27.9% | 68 | 73 |
| estrada do Sobradinho | Active | €1,295,000 | €4,302 | 14.2% | 85 | 76 |
| Loulé (São Sebastião) · 6d54b0 | Active | €2,500,000 | €6,720 | 34.1% | 82 | 59 |
| Loulé (São Sebastião) · 6d5523 | Active | €1,800,000 | €6,000 | 19.7% | 80 | 70 |
| Median comp | €1,625,000 | €5,151 | 2.8% | 81 | 72 |
Long-term rental Investing in this property for long-term rental is not advisable, as it is priced 21.9% above fair value, resulting in a yield of only 1.7%. Moreover, the property's condition and average neighborhood score suggest limited potential for capital appreciation and tenant demand. Short-term vacation rental Although the Algarve region attracts tourists, this villa is overpriced and the gross yield of 1.7% indicates poor investment potential for short-term vacation rentals. Additionally, the neighborhood score does not reflect the amenities needed to attract high-paying guests, which could impact occupancy rates. Buy-and-hold Holding this property in a buy-and-hold strategy is questionable, given its significant overpricing at 21.9% above fair value, limiting the likelihood of achieving satisfactory returns. The overall condition of the property and the average neighborhood score do not support a strong growth trajectory necessary for this investment approach.
Economic Vulnerability The property is at risk due to a relatively low economic stability score of 55/100, potentially leading to fluctuations in rental demand and income stability.
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