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, 2-bathroom house of 158 m². Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property features abundant outdoor living spaces with a landscaped garden filled with a variety of fruitful trees, enhancing both privacy and aesthetic appeal.
The valuation. The asking price of €559,000 is significantly below the fair value of €751,379, indicating a potential undervaluation of €192,379 (25.6%). This makes the property an attractive option for investors seeking value. Buy-to-flip angle. With strategic renovations, including updating standard finishes to match higher-end features, this property could appeal to buyers looking for quality and charm, making it an ideal candidate for a buy-to-flip strategy. Buy-to-let angle. The estimated rental income of €2,516 per month offers a gross yield of 5.4%, providing a stable and attractive passive income stream for long-term investors in a desirable rental market.
Fair value modelled at €751,379 from 6 comparable sales in the area. Asking €559,000 sits €192,379 (25.6%) below — the upside to fair value.
Asking €559,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €727,401 (€4,604/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 is below the parish average, reducing 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 €727,401, adjusted for condition and micro-location, gives a modelled fair value of €751,379 (€4,756/m²), a €192,379 (25.6%) gap versus the €559,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 1f3391 | Subject | €559,000 | €3,538 | — | 62 | 67 |
| Boliqueime · 93888f | Active | €2,100,000 | €4,751 | 34.3% | 80 | 74 |
| Loulé (São Sebastião) · be94dd | Active | €1,190,000 | €4,760 | 34.5% | 80 | 65 |
| Loulé (São Sebastião) · cfe1f2 | Active | €750,000 | €7,353 | 107.8% | 74 | 72 |
| Loulé (São Sebastião) · 4a7f7f | Active | €695,000 | €2,896 | 18.1% | 68 | 61 |
| Median comp | €970,000 | €4,756 | 34.4% | 77 | 69 |
Short-term vacation rental The property is strategically positioned in Loulé, an area characterized by its strong tourism appeal, allowing for a robust daily rental yield of 5.4%. Given the fair value of €751,379 and the current listing price of €559,000, this property presents an attractive opportunity for generating income through vacation rentals while benefiting from the regional tourism influx. Buy-and-hold With a significant gap of 25.6% below its fair value, this property in Loulé is a compelling candidate for a buy-and-hold strategy, capturing value appreciation over time. The combination of a reasonably high neighborhood score of 67/100 and a strong tourism market supports long-term investment viability. Long-term rental This 4-bed house boasts a gross yield of 5.4%, offering solid returns for long-term rental investors in the desirable Algarve region. Although the property’s condition is rated at 66/100, the advantageous listing price compared to its fair value highlights an opportunity to build steady rental income in an attractive location. Not ideal for luxury market Though the property is situated in a location with potential, its characteristics do not cater to the luxury market that typically demands higher finishes and amenities. Consequently, the expectation of lower demand from high-end renters could affect potential rental income expectations. Not ideal for student housing Given the property’s location in a rural area of Algarve, it lacks the proximity to universities and student life that is essential for an ideal student housing investment. As a result, targeting student renters may not yield the desired stability and income, making it less suitable for this market.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk level, suggesting potential fluctuations in market conditions that could impact property value and rental income. Tenant Instability With a tenant stability score of 70, there exists a risk of tenant turnover resulting in potential vacancy periods that could affect cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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