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.
4-bedroom, 3-bathroom house of 250 m², built in 2003, energy rating B. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa boasts expansive terraces ideal for outdoor entertaining, and offers an impressive elevated position that enhances its breathtaking panoramic views of the Atlantic Ocean.
The valuation. The asking price of €1,190,000 is significantly above the fair value of €982,502, a difference of €207,498 (17.4%). This positions the property as overpriced, making it an unattractive buy at its current listing.
Fair value modelled at €982,502 from the area baseline, adjusted for condition and location. Asking €1,190,000 sits €207,498 (17.4%) above — overpriced versus fair value.
Asking €1,190,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €753,000 (€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 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 65/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €753,000 + condition +€29,297 + location +€53,955 = modelled fair value of €982,502 (€3,930/m²), a €207,498 (17.4%) gap versus the €1,190,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · be94dd | Subject | €1,190,000 | €4,760 | — | 80 | 65 |
| Boliqueime · 4d40be | Active | €1,595,000 | €3,709 | 22.1% | 78 | 70 |
| Boliqueime · 93888f | Active | €2,100,000 | €4,751 | 0.2% | 80 | 74 |
| Loulé (São Sebastião) · cfe1f2 | Active | €750,000 | €7,353 | 54.5% | 74 | 72 |
| Loulé (São Sebastião) · 4a7f7f | Active | €695,000 | €2,896 | 39.2% | 68 | 61 |
| Median comp | €1,172,500 | €4,230 | 11.1% | 76 | 71 |
Long-term rental This property in Loulé is overpriced by 17.4% compared to its fair value, which may hinder potential long-term rental returns. With a gross yield of 3.6%, investors might find more lucrative opportunities in the area. Short-term vacation rental While the location in the Algarve benefits from tourism, the 17.4% gap from fair value indicates this property may not provide adequate returns in the short-term vacation rental market. The average condition score of 83 suggests it may require additional investment to meet guest expectations. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable given its 17.4% overpricing relative to fair value, which limits future appreciation potential. The neighbourhood rating of 65 marks it as less desirable, potentially impacting long-term investment gains.
Economic Vulnerability The property faces potential risks due to its economic stability score of 60/100, indicating possible fluctuations in local economic conditions that could impact rental income and tenant demand.
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