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, 4-bathroom house of 309 m², energy rating B. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. The property boasts a unique historical significance as the former residence of a notable landowner, adding charm and character to its modern renovation and design.
The valuation. The asking price of €1,900,000 sits significantly above the fair value of €1,161,525, which indicates the property is overpriced by €738,475 (38.9%). This discrepancy suggests potential challenges in achieving a favorable investment outcome.
Fair value modelled at €1,161,525 from the area baseline, adjusted for condition and location. Asking €1,900,000 sits €738,475 (38.9%) above — overpriced versus fair value.
Asking €1,900,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €954,192 (€3,088/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 58/100 (Housing Market 60 · Amenities 60 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
Loulé (São Clemente), Loulé, Faro
Area baseline €954,192 + condition +€14,484 + location +€35,567 = modelled fair value of €1,161,525 (€3,759/m²), a €738,475 (38.9%) gap versus the €1,900,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 225a61 | Subject | €1,900,000 | €6,149 | — | 75 | 58 |
| Loulé (São Clemente) · 6eba13 | Active | €1,400,000 | €7,650 | 24.4% | 82 | 62 |
| autoestrada EM520-1, 340 | Active | €2,250,000 | €4,611 | 25.0% | 85 | 72 |
| Loulé (São Clemente) · 0014cb | Active | €2,500,000 | €6,173 | 0.4% | 80 | 63 |
| Loulé (São Clemente) · 96c525 | Active | €1,950,000 | €7,249 | 17.9% | 85 | 62 |
| Median comp | €2,100,000 | €6,711 | 9.1% | 84 | 63 |
Short-term vacation rental The property is overpriced by 38.9% compared to its fair value, limiting the potential for attractive returns through short-term vacation rentals. With a gross yield of only 1.9%, it does not present a compelling case for a profitable investment in this strategy. Buy-and-hold Given the significant gap versus fair value, this property is unlikely to generate satisfactory long-term capital appreciation as a buy-and-hold investment. The economic instability driven by seasonal tourism factors in the Algarve adds further risk to holding this property long-term. Value-add renovation The current condition score of 78 suggests that while there is some opportunity for improvement, the existing price level makes value-add renovation less appealing. The high valuation compared to fair market value hampers the likelihood of achieving a return that justifies the renovation costs.
Economic and Tenant Volatility The property has a moderate economic stability score of 55/100 and a tenant stability score of 55/100, indicating potential challenges in maintaining consistent rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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