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, 2-bathroom house of 138 m², built in 1900, energy rating C. Located on avenida Cerro da Vila, 2A, Quarteira parish, Loulé municipality, Faro district. Noteworthy Features: This property includes a modern open-space kitchen that seamlessly connects to a bright dining area, enhancing the overall spacious feel and flow of the home.
The valuation. The asking price of €950,000 sits €222,793 (23.5%) above the fair value of €727,207, indicating that the property is overpriced. Buyers should approach this investment with caution due to the significant discrepancy.
Fair value modelled at €727,207 from the area baseline, adjusted for condition and location. Asking €950,000 sits €222,793 (23.5%) above — overpriced versus fair value.
Asking €950,000 versus the avenida Cerro da Vila, 2A area baseline of €646,668 (€4,686/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 72 · Materials 80 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 80/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 90). Strong amenities and housing-market momentum support a premium to baseline.
avenida Cerro da Vila, 2A
Area baseline €646,668 + condition +€8,194 + location +€77,037 = modelled fair value of €727,207 (€5,270/m²), a €222,793 (23.5%) gap versus the €950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida Cerro da Vila, 2A | Subject | €950,000 | €6,884 | — | 72 | 80 |
| rua de Portugal, 4 | Active | €560,000 | €4,746 | 31.1% | 75 | 73 |
| rua das Avelãs | Active | €720,000 | €4,865 | 29.3% | 72 | 70 |
| Quarteira · f365d3 | Active | €539,000 | €5,133 | 25.4% | 73 | 66 |
| Quarteira · 99f3ae | Active | €750,000 | €4,902 | 28.8% | 73 | 73 |
| Median comp | €640,000 | €4,884 | 29.1% | 73 | 72 |
Short-term vacation rental The property in Quarteira is currently overpriced by 23.5%, making it a less attractive investment for short-term vacation rentals, despite the area's high tourism character. With a gross yield of only 2.8%, potential returns may not justify the elevated price point in a competitive rental market. Buy-and-hold As the current valuation exceeds fair value, the buy-and-hold strategy for this property does not present a favorable outlook for long-term appreciation. A gross yield of 2.8% and a significant gap from fair value suggest that the investment carries too much risk relative to expected returns. Luxury market While the property appeals to the luxury market due to its location, the 23.5% price discrepancy from fair value indicates that this asset is overpriced for potential luxury buyers. The market's demand may be high, but investors should be cautious as the elevated price could stifle profitability down the line.
Economic downturn risk A score of 70/100 in economic stability suggests a potential for economic downturns affecting property value and rental income.
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