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.
4-bedroom, 3-bathroom country_house of 300 m², built in 2009, energy rating B. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property boasts a unique commercial license for diverse business opportunities, while the expansive 90 m² open space on the ground floor has been creatively adapted from a warehouse into multifunctional living areas.
The valuation. The asking price of €699,900 is significantly below the fair value of €1,293,912, representing a discount of €594,012 (45.9%). This property is underpriced and presents a compelling opportunity for investors. Buy-to-flip angle. The resale strategy could capitalize on the substantial value gap, allowing for a quick renovation and subsequent sale at market value, potentially generating a significant profit for the buyer. Buy-to-let angle. A successful rental strategy may include both short-term vacation rentals and long-term leasing, with an estimated gross yield of 6.8%, equating to approximately €3,966 per month, making it a stable income generator.
Fair value modelled at €1,293,912 from 6 comparable sales in the area. Asking €699,900 sits €594,012 (45.9%) below — the upside to fair value.
Asking €699,900 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,078,236 (€3,594/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €1,078,236, adjusted for condition and micro-location, gives a modelled fair value of €1,293,912 (€4,313/m²), a €594,012 (45.9%) gap versus the €699,900 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · d7499f | Subject | €699,900 | €2,333 | — | 68 | 70 |
| Loulé (São Clemente) · 28bc49 | Active | €790,000 | €2,948 | 26.4% | 70 | 70 |
| Loulé (São Clemente) · 93759d | Active | €575,000 | €3,833 | 64.3% | 72 | 54 |
| Loulé (São Sebastião) · da470e | Active | €1,450,000 | €3,616 | 55.0% | — | 73 |
| Loulé (São Sebastião) · 6d54b0 | Active | €2,500,000 | €6,720 | 188.1% | 82 | 59 |
| Median comp | €1,120,000 | €3,725 | 59.6% | 72 | 65 |
Short-term vacation rental The property presents a substantial opportunity for short-term vacation rentals, with a gross yield of 6.8%. Given Loulé's popularity in the Algarve and its flourishing tourism sector, this property is positioned to generate consistent rental income and attract visitors year-round. Long-term rental This 4-bedroom country house is an appealing option for long-term rentals, supported by a strong local housing demand and a fair value that significantly exceeds the listing price. The combination of a solid yield and the neighborhood's amenities ensures it will attract quality tenants seeking stable accommodations. Buy-and-hold Investing in this property as a buy-and-hold strategy is advantageous due to its current listing being subvalued compared to its fair market value. The ongoing demand in Algarve's real estate market indicates potential appreciation over time, making it a strategic addition to any investment portfolio.
Economic risk due to stability score The economic stability score of 60/100 indicates a potential for economic fluctuations that could negatively impact 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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