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.
6-bedroom, 5-bathroom house of 338 m², built in 1996, energy rating C. Located on rua Passis do Almargem, Quarteira parish, Loulé municipality, Faro district. Noteworthy Features: The property includes a traditional wine cellar and a fully equipped self-contained studio apartment in the basement, enhancing its versatility for guests or rental income. Condition: Primarily good condition with minor wear in certain areas.
The valuation. The asking price of €1,495,000 is notably above the fair value of €1,181,895, representing an overpriced status by €313,105 (26.5%). This presents a significant concern for potential investors.
Fair value modelled at €1,181,895 from 5 comparable sales in the area. Asking €1,495,000 sits €313,105 (26.5%) above — overpriced versus fair value.
Asking €1,495,000 versus the rua Passis do Almargem area baseline of €1,227,785 (€3,633/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 73/100 is below the parish average, reducing 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 €1,227,785, adjusted for condition and micro-location, gives a modelled fair value of €1,181,895 (€3,497/m²), a €313,105 (26.5%) gap versus the €1,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Passis do Almargem | Subject | €1,495,000 | €4,423 | — | 70 | 70 |
| Quarteira · 483c01 | Active | €2,675,000 | €3,497 | 20.9% | 75 | 81 |
| rua da Espanha | Active | €2,675,000 | €3,497 | 20.9% | 75 | 71 |
| Quarteira · ba5bef | Active | €1,190,000 | €3,306 | 25.3% | 76 | 68 |
| rua da Dinamarca, 1 | Active | €1,750,000 | €5,401 | 22.1% | 74 | 70 |
| Median comp | €2,212,500 | €3,497 | 20.9% | 75 | 71 |
Short-term vacation rental This property is overpriced by 26.5% compared to its fair value of €1,181,895, which diminishes its potential as a profitable short-term vacation rental investment. The gross yield of 3.7% is relatively low, and given the seasonal nature of tourism in Algarve, the high entry price further complicates achieving satisfactory returns. Long-term rental At a listing price of €1,495,000, this property is overpriced, making it less attractive for long-term renting opportunities. With a fair value significantly lower at €1,181,895 and only a 3.7% gross yield, the investment may not generate the necessary cash flow for sustainability. Buy-and-hold While held as a buy-and-hold investment, the property is overpriced by 26.5%, which raises concerns about capital appreciation and return on investment. Considering the fair value is €1,181,895 and the average neighborhood quality score is 70/100, this high-cost entry could limit long-term profitability. Not ideal for student housing Due to the high price and the low yield, this property does not fit the student housing market well, where affordability is key. The market's typical demand dynamic does not align with the investment level required here. Not ideal for luxury market The condition of the property scores only 73/100, suggesting necessary improvements, which are counterproductive for catering to the luxury market. The price point also positions it unfavorably against competitive luxury listings in Algarve.
Economic Volatility The property faces risks due to its economic stability score of 65/100, indicating potential fluctuations in income and investment returns. Tenant Turnover With a tenant stability score of 65/100, there is heightened risk of turnover, which can lead to increased vacancy rates and maintenance costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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