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, 5-bathroom house of 340 m², built in 2022, energy rating C. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property features a double-height entrance with a floating staircase, seamlessly blending luxury design with panoramic sea views that enhance the overall living experience.
The valuation. The asking price of €2,950,000 is significantly above the fair value of €1,525,867, resulting in a discrepancy of €1,424,133, or 93.3%. This property is deemed overpriced. Buy-to-flip angle. A resale strategy focuses on capitalizing on the high-end finishes to attract buyers willing to pay a premium, although current market conditions may hinder rapid resale. Buy-to-let angle. With an estimated gross yield of 1.9%, the rental strategy will likely involve short-term vacation rentals, appealing to tourists in the popular Algarve region.
Fair value modelled at €1,525,867 from 6 comparable sales in the area. Asking €2,950,000 sits €1,424,133 (93.3%) above — overpriced versus fair value.
Asking €2,950,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,097,051 (€3,227/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 93/100 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 €1,097,051, adjusted for condition and micro-location, gives a modelled fair value of €1,525,867 (€4,488/m²), a €1,424,133 (93.3%) gap versus the €2,950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 3df382 | Subject | €2,950,000 | €8,676 | — | 95 | 79 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 7.7% | 78 | 63 |
| Loulé (São Sebastião) · 9116c6 | Active | €1,629,000 | €5,012 | 42.2% | 80 | 64 |
| Boliqueime · 4d40be | Active | €1,595,000 | €3,709 | 57.2% | 78 | 70 |
| rua de Poço Geraldo | Active | €2,150,000 | €4,216 | 51.4% | 75 | 66 |
| Median comp | €1,889,500 | €4,614 | 46.8% | 78 | 65 |
Short-term vacation rental The €2,950,000 listing price for this property, with a fair value of €1,525,867, represents a significant 93.3% gap, indicating it is overpriced. At a gross yield of only 1.9%, the financial return does not justify the investment when considering the high entry price. Buy-and-hold Given the substantial overpricing of this property, with a fair value of €1,525,867 versus the listing price of €2,950,000, the investment does not align with a prudent buy-and-hold strategy. The expected appreciation in an already inflated market could be limited, further undermining potential long-term gains. Long-term rental This property’s overvaluation, with a 93.3% gap from its fair value of €1,525,867, makes it an unattractive option for long-term rental investments. The low gross yield of 1.9% suggests that rent will not adequately cover the high initial cost, leading to diminished rental attractiveness in the market.
Economic Fluctuation Risk The property may face challenges due to its moderate economic stability score of 75, implying potential vulnerability to market downturns that could impact rental income.
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
