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 townhouse of 226 m², built in 2020, energy rating A. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This townhouse features a striking double-height garden room that enhances its spaciousness and versatility, perfect for entertaining or relaxing while being bathed in natural light.
The valuation. The asking price of €1,295,000 sits significantly above the fair value of €902,675, illustrating an excessive premium of €392,325 (30.3%). This property is classified as overpriced based on current market conditions.
Fair value modelled at €902,675 from the area baseline, adjusted for condition and location. Asking €1,295,000 sits €392,325 (30.3%) above — overpriced versus fair value.
Asking €1,295,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €680,712 (€3,012/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 85 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Sebastião), Loulé, Faro
Area baseline €680,712 + condition +€24,719 + location +€65,034 = modelled fair value of €902,675 (€3,994/m²), a €392,325 (30.3%) gap versus the €1,295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · be96aa | Subject | €1,295,000 | €5,730 | — | 85 | 70 |
| estrada do Sobradinho | Active | €1,295,000 | €4,302 | 24.9% | 85 | 76 |
| Loulé (São Sebastião) · 9116c6 | Active | €1,629,000 | €5,012 | 12.5% | 80 | 64 |
| Loulé (São Sebastião) · 6d54b0 | Active | €2,500,000 | €6,720 | 17.3% | 82 | 59 |
| Loulé (São Sebastião) · 956ee6 | Active | €1,450,000 | €3,616 | 36.9% | 68 | 73 |
| Median comp | €1,539,500 | €4,657 | 18.7% | 81 | 69 |
Short-term vacation rental Given the impressive location of this townhouse in Loulé, it is positioned in a popular tourist area; however, the current pricing reflects a 30.3% gap compared to fair value, indicating its overpriced status. With a gross yield of only 2.3%, this strategy may not deliver the expected returns for investors seeking short-term rental income. Long-term rental Despite the townhouse's decent condition rated at 82/100, the asking price considerably exceeds its fair value, making it less attractive for long-term rental investment. The yield of 2.3% suggests that the investment might not generate sufficient returns relative to the outlay, particularly in an overpriced market. Buy-and-hold Investing in this townhouse for the buy-and-hold strategy may not be advisable, as the property is overpriced by 30.3% against its fair value, complicating future appreciation expectations. This could lead to potential challenges in both cash flow and equity growth over time due to the current elevated price point.
Economic Vulnerability With an economic stability score of 60/100, there is a heightened risk of economic downturns affecting property value and tenant demand.
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