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.
3-bedroom, 2-bathroom house of 162 m², built in 1988, energy rating D. Located on beco da Laranjeira, 360A, Almancil parish, Loulé municipality, Faro district. Noteworthy Features: The property boasts a cozy fireplace in the living room and a private pool surrounded by a well-maintained garden, enhancing its outdoor appeal.
The valuation. The asking price of €620,000 sits significantly above the fair value of €525,825 by €94,175 (17.9%), indicating the property is overpriced. This discrepancy suggests a potential mismatch between seller expectations and market reality.
Fair value modelled at €556,200 from 5 comparable sales in the area. Asking €600,000 sits €43,800 (7.9%) above — overpriced versus fair value.
Asking €600,000 versus the beco da Laranjeira, 360A area baseline of €710,250 (€4,384/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €710,250, adjusted for condition and micro-location, gives a modelled fair value of €556,200 (€3,433/m²), a €43,800 (7.9%) gap versus the €600,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| beco da Laranjeira, 360A | Subject | €600,000 | €3,704 | — | 76 | 64 |
| estrada Vale Formoso, 295 | Active | €1,030,000 | €3,433 | 7.3% | 80 | — |
| estrada Vale Formoso, 295 | Active | €1,030,000 | €3,433 | 7.3% | 80 | — |
| beco da Laranjeira, 360A | Active | €620,000 | €3,827 | 3.3% | 70 | 60 |
| caminho das Laranjeiras | Active | €950,000 | €3,167 | 14.5% | 75 | 61 |
| Median comp | €990,000 | €3,433 | 7.3% | 78 | 61 |
Long-term rental The property, listed at €620,000, exceeds its fair value by 17.9% at €525,825, making it a less favorable long-term rental investment. With a gross yield of 5.7%, the current pricing does not justify the potential returns in comparison to typical yields in the Algarve. Short-term vacation rental While the property offers a reasonable gross yield of 5.7%, its overvaluation at €620,000 signals a misalignment with market expectations for short-term rentals. Given the local competition and average neighborhood ratings, the investment is expected to yield less than optimal returns. Buy-and-hold Investing in this property for a buy-and-hold strategy seems imprudent, as it is priced at €620,000, 17.9% above the fair market value of €525,825. The combined effects of a moderate yield and average neighborhood ratings suggest the potential for limited appreciation over time, thereby hindering long-term growth prospects.
Economic and Tenant Stability Risk The property has a moderate economic stability score of 60/100 and a tenant stability score of 60/100, indicating potential vulnerability to market fluctuations and tenant turnover issues that may affect profitability in the long term.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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