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.
1-bedroom, 1-bathroom house of 60 m². Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. The property comes with completed architectural plans for reconstruction, allowing for a quick start to the building process while retaining the region's traditional character and charm.
The valuation. The asking price of €131,000 is significantly below the fair value of €160,135, indicating a discount of €29,135 (18.2%). This positions the property as an attractive opportunity in the current market.
Fair value modelled at €160,135 from 5 comparable sales in the area. Asking €131,000 sits €29,135 (18.2%) below — the upside to fair value.
Asking €131,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €194,890 (€3,248/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 23/100 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 €194,890, adjusted for condition and micro-location, gives a modelled fair value of €160,135 (€2,669/m²), a €29,135 (18.2%) gap versus the €131,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · f5e9aa | Subject | €131,000 | €2,183 | — | 18 | 76 |
| Loulé (São Sebastião) · dee644 | Active | €187,500 | €884 | 59.5% | 30 | 60 |
| Loulé (São Sebastião) · 6c7797 | Active | €290,000 | €2,339 | 7.1% | 38 | 57 |
| Loulé (São Sebastião) · 65a4c6 | Active | €220,000 | €7,097 | 225.0% | — | 72 |
| Loulé (São Sebastião) · 6c7b49 | Active | €395,000 | €2,669 | 22.2% | 20 | 69 |
| Median comp | €255,000 | €2,504 | 14.7% | 30 | 65 |
Short-term vacation rental The property in Loulé is well-positioned for short-term vacation rentals with a gross yield of 6.5% and a significant gap of 18.2% below its fair value. With the area's strong tourism economy, this house presents an attractive investment opportunity for generating rental income. Long-term rental Given the impressive neighbourhood score of 76/100, this property serves as a solid option for long-term rental investments despite its lower condition rating of 23/100. A rental strategy would leverage the existing demand in the Algarve market while still benefiting from the property's 18.2% undervaluation. Family rental This 1-bed house in Loulé can effectively cater to families seeking affordable housing options in a desirable area, evidenced by its fair value and neighbourhood rating. The 6.5% gross yield suggests that it could successfully attract stable, long-term tenants in a community that values quality living spaces.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of economic downturns that may impact rental income and property value.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
