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.
5-bedroom, 6-bathroom villa of 765 m², built in 1992. Located on rua da Espanha, Quarteira parish, Loulé municipality, Faro district. This villa features a multifunctional basement studio that offers flexible use options, ideal for entertainment or additional guest accommodations, enhancing the property's versatility.
The valuation. The asking price of €2,675,000 is significantly below the fair value of €3,899,553, revealing a difference of €1,224,553 (45.8%). This property is underpriced. Buy-to-flip angle. The strategy involves a short-term renovation to enhance appeal and market competitiveness, targeting a resale after upgrades to capitalize on the strong Algarve market. Buy-to-let angle. With an estimated rental income of €5,573/month, the gross yield stands at 2.5%, making this a solid option for long-term family rentals or short-term vacation rentals in a high-demand area.
Fair value modelled at €3,899,553 from the area baseline, adjusted for condition and location. Asking €2,675,000 sits €1,224,553 (45.8%) below — the upside to fair value.
Asking €2,675,000 versus the rua da Espanha area baseline of €3,584,790 (€4,686/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 65 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua da Espanha
Area baseline €3,584,790 + condition +€41,836 + location +€298,938 = modelled fair value of €3,899,553 (€5,097/m²), a €1,224,553 (45.8%) gap versus the €2,675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Espanha | Subject | €2,675,000 | €3,497 | — | 75 | 71 |
| Quarteira · ba5bef | Active | €1,190,000 | €3,306 | 5.5% | 76 | 68 |
| rua do Canadá | Active | €1,190,000 | €3,967 | 13.4% | 79 | 67 |
| avenida Vilamoura XXI | Active | €685,000 | €3,425 | 2.1% | 80 | 71 |
| Quarteira · 9570b4 | Active | €1,495,000 | €4,423 | 26.5% | 70 | 71 |
| Median comp | €1,190,000 | €3,696 | 5.7% | 78 | 70 |
Short-term vacation rental This property presents a compelling opportunity for short-term vacation rentals, capitalizing on the Algarve's robust tourism demand. With a fair value indicating a gap of 45.8% compared to the listing price, the potential for increased rental income makes this property an attractive investment for yield-seeking investors. Buy-and-hold As a buy-and-hold investment, this villa showcases significant appreciation potential given its listed price well below fair value. With a condition rating of 79/100 and a strong tourism-driven economic backdrop, it promises both capital growth and stable rental yields over time. Family rental The villa's spacious layout and favorable location position it well for family rentals, appealing to long-term tenants seeking quality living in a desirable area. The overall neighborhood score of 71/100 supports its attractiveness among families, despite its 2.5% gross yield, which reflects the current rental market dynamics in Quarteira, Loulé.
Tenant turnover risk High tenant turnover may occur due to economic stability being relatively low at 65/100, which can lead to increased vacancy rates and loss of 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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