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 villa of 239 m², built in 2004, energy rating C. Located on rua das Caraíbas, Quarteira parish, Loulé municipality, Faro district. This villa boasts exquisite al fresco dining areas overlooking the golf course, designed for year-round entertainment and relaxation in the heart of the Algarve.
The valuation. The asking price of €2,375,000 is significantly above the fair value of €2,111,363, resulting in an excess of €263,637 (12.5%). Verdict: overpriced. Buy-to-flip angle. The resale strategy would focus on leveraging high-end finishes to attract buyers seeking luxury properties in a tourism-driven area. With seasonality influencing demand, capitalizing on market trends is essential. Buy-to-let angle. The estimated gross yield of 2.2% translates to approximately €4,354 per month, making it suitable for long-term rental. However, the mixed neighborhood rating indicates variable rental demand, impacting income stability.
Fair value modelled at €2,111,363 from 6 comparable sales in the area. Asking €2,375,000 sits €263,637 (12.5%) above — overpriced versus fair value.
Asking €2,375,000 versus the rua das Caraíbas area baseline of €2,040,185 (€8,536/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €2,040,185, adjusted for condition and micro-location, gives a modelled fair value of €2,111,363 (€8,834/m²), a €263,637 (12.5%) gap versus the €2,375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Caraíbas | Subject | €2,375,000 | €9,937 | — | 82 | 74 |
| Quarteira · 6d5187 | Active | €2,600,000 | €8,075 | 18.7% | 80 | 73 |
| Quarteira · 225cbb | Active | €2,375,000 | €8,333 | 16.1% | 76 | 64 |
| Quarteira · 938754 | Active | €3,300,000 | €9,851 | 0.9% | 76 | 64 |
| largo dos Três Caminhos | Active | €2,500,000 | €8,621 | 13.2% | 80 | 70 |
| Median comp | €2,550,000 | €8,477 | 14.7% | 78 | 67 |
Short-term vacation rental While the property may attract tourists due to its villa setup in Quarteira, the gross yield of 2.2% suggests that it won't generate a competitive return on investment compared to comparable vacation rentals. Additionally, with the fair value being 12.5% lower than the listing price, this suggests that now may not be the ideal time to invest for short-term rental purposes. Buy-and-hold Investing in this 5-bed villa under the buy-and-hold strategy is not advisable, given its 12.5% gap from fair value and lower-than-average gross yield of 2.2%. Holding onto the property under current market conditions risks underperformance, particularly in a tourism-driven market exhibiting seasonal economic activity. Long-term rental Acquiring this property for long-term rental is not likely to provide satisfactory returns, as indicated by both the 2.2% gross yield and the identified overpricing of 12.5% above fair market value. The outdated pricing structure may limit rental demand and tenant quality, further straining profitability in a primarily seasonal market.
Economic Vulnerability The property is at risk due to a relatively low economic stability score of 65/100, indicating potential fluctuations in the local economy that may impact tenant demand.
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