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, 5-bathroom villa of 446 m². Located on rua do Bispo, Almancil parish, Loulé municipality, Faro district. Noteworthy Features: This villa features mature fruit trees including avocado and mango, along with a practical poolside storage room equipped with a WC and outdoor shower for convenience.
The valuation. The asking price of €3,995,000 is significantly below the fair value of €5,208,869, presenting a discount of €1,213,869 (23.3%). This property is an intriguing option due to its subvalued status.
Fair value modelled at €5,208,869 from 6 comparable sales in the area. Asking €3,995,000 sits €1,213,869 (23.3%) below — the upside to fair value.
Asking €3,995,000 versus the rua do Bispo area baseline of €5,306,881 (€11,899/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €5,306,881, adjusted for condition and micro-location, gives a modelled fair value of €5,208,869 (€11,679/m²), a €1,213,869 (23.3%) gap versus the €3,995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Bispo | Subject | €3,995,000 | €8,957 | — | 78 | 63 |
| Quarteira · 6d5187 | Active | €2,600,000 | €8,075 | 9.9% | 80 | 73 |
| Almancil · 4bbf27 | Active | €1,390,000 | €9,858 | 10.1% | 85 | 63 |
| Almancil · 893689 | Active | €4,150,000 | €13,562 | 51.4% | 80 | 66 |
| avenida Oceano | Active | €7,350,000 | €17,093 | 90.8% | 85 | 61 |
| Median comp | €3,375,000 | €11,710 | 30.7% | 83 | 65 |
Short-term vacation rental This property presents a robust opportunity for short-term vacation rentals due to its location in a tourist-frequented part of Algarve, positioning it to attract vacationers seeking luxury accommodations. With a fair value gap of 23.3%, investors can capitalize on projected returns even at a gross yield of 1.5%. Buy-and-hold The villa's location and fair value of €5,208,869 indicate strong potential for long-term appreciation in the housing market, making it a strategic buy-and-hold investment. Despite the current gross yield of 1.5%, the underlying property growth aligned with tourism trends may enhance overall returns in the long run. Family rental Investing in this villa for family rental purposes is strategically sound given the stable demographic of families seeking quality housing in desirable neighborhoods like Almancil. With a healthy fair value exceeding the asking price and a commendable property condition score of 81/100, it promises to meet the needs of long-term tenants. Not ideal for student housing The property's luxury nature and location do not align with the demands of the student rental market, where affordability and utility are key. This significant mismatch suggests that pursuing student housing would not be a prudent investment strategy. Not ideal for luxury market As the villa is situated in a tourist-centric area, its investment potential may not truly meet the high expectations of the luxury market segment. Consequently, marketing this property as part of the luxury portfolio could lead to challenges in aligning price and demand. Not ideal for industrial development Given the residential character of the Almancil area and its economic reliance on tourism, this property lacks the necessary attributes for conversion into an industrial development. Such a shift would not capitalize on the unique value this villa offers within its current market context.
Economic Volatility Risk: With an economic stability score of 55/100, there is a significant risk of economic downturn affecting tenant retention and rent collection.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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