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 415 m², built in 1986, energy rating E. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. This home features a spacious terrace overlooking the private pool, offering an ideal space for outdoor entertaining and relaxation in a serene residential setting.
The valuation. The asking price of €598,000 is €49,202 (7.6%) below the fair value of €647,202, indicating that this property is adequately priced within the current market conditions. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the house's good condition and modern fixtures by making minor aesthetic upgrades to enhance appeal, targeting a higher resale value. Buy-to-let angle. A buy-to-let approach could generate a gross yield of 5.5%, with estimated rental income of approximately €2,741 per month, appealing to long-term tenants attracted to the Algarve region's amenities.
Fair value modelled at €647,202 from 6 comparable sales in the area. Asking €598,000 sits €49,202 (7.6%) below — the upside to fair value.
Asking €598,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €438,620 (€1,057/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 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 €438,620, adjusted for condition and micro-location, gives a modelled fair value of €647,202 (€1,560/m²), a €49,202 (7.6%) gap versus the €598,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · f46c7b | Subject | €598,000 | €1,441 | — | 65 | 59 |
| Loulé (São Clemente) · 261cb9 | Active | €255,000 | €966 | 33.0% | 75 | 69 |
| Almancil · f36380 | Active | €450,000 | €3,000 | 108.2% | 58 | 67 |
| via do Infante | Active | €875,000 | €1,786 | 23.9% | 65 | 68 |
| Loulé (São Clemente) · 956801 | Active | €280,000 | €1,333 | 7.5% | — | 59 |
| Median comp | €365,000 | €1,560 | 8.2% | 65 | 68 |
Long-term rental Given the 5.5% gross yield and a fair market value, this property presents a stable income opportunity for long-term rentals. However, the condition rating of 70/100 and a neighbourhood score of 59/100 suggest that tenant appeal may not be optimum. Buy-and-hold As a buy-and-hold investment, this property has the potential for slight appreciation, given its fair pricing in the context of local market trends. Nonetheless, given its relatively modest condition and neighbourhood rating, future resale values could be limited. Short-term vacation rental In the realm of short-term vacation rentals, this property benefits from proximity to the Algarve coast, attracting seasonal renters despite being priced fairly. That said, the neighbourhood rating may deter some vacationers looking for higher-rated areas with more amenities and better tenant quality.
Economic Instability Risk With an economic stability score of 50/100, there is a significant risk that local economic factors could lead to decreased demand and potential rent reductions. Tenant Instability Risk Given a tenant stability score of 60/100, there's a moderate risk of tenant turnover negatively impacting cash flow and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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