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, 1-bathroom house of 192 m², energy rating G. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: This century-old house features traditional Algarve architectural elements and holds substantial potential for urban redevelopment, providing unobstructed mountain views within a growing market.
The valuation. The asking price of €345,000 sits significantly below the fair value of €434,116, making it underpriced by €89,116 (20.5%). This represents an excellent opportunity for potential investors seeking value.
Fair value modelled at €434,116 from 6 comparable sales in the area. Asking €345,000 sits €89,116 (20.5%) below — the upside to fair value.
Asking €345,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €570,594 (€2,972/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 13/100 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 €570,594, adjusted for condition and micro-location, gives a modelled fair value of €434,116 (€2,261/m²), a €89,116 (20.5%) gap versus the €345,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 626f87 | Subject | €345,000 | €1,797 | — | — | 71 |
| Loulé (São Sebastião) · 6c7b49 | Active | €395,000 | €2,669 | 48.5% | 20 | 69 |
| Loulé (São Sebastião) · dee435 | Active | €395,000 | €2,669 | 48.5% | 25 | 73 |
| Loulé (São Sebastião) · dee644 | Active | €187,500 | €884 | 50.8% | 30 | 60 |
| Loulé (São Sebastião) · ba5907 | Active | €131,000 | €2,183 | 21.5% | — | 64 |
| Median comp | €291,250 | €2,426 | 35.0% | 25 | 67 |
Short-term vacation rental This property, listed at €345,000 with a fair value of €434,116, offers an attractive opportunity in the short-term vacation rental market given the expected consistent tourist demand in the Algarve. The gross yield of 11.1%, combined with the neighbourhood's score of 71/100, indicates strong potential for stable rental income. Long-term rental With a fair value 20.5% higher than the asking price, this home presents a compelling long-term rental investment, particularly in a location that meets provincial standards for schools, thus attracting families and long-term tenants. The gross yield of 11.1% further enhances its appeal for sustainable income generation. Buy-and-hold This property is positioned advantageously for a buy-and-hold strategy, being underpriced with a fair value significantly higher than the listing price and situated in a neighbourhood scoring 71/100 for amenities. The steady tourism and anticipated rental demand in the Algarve suggest that holding onto this asset could yield substantial appreciation over time.
Economic Vulnerability The Economic stability score of 65/100 indicates a moderate risk of economic downturns impacting the property’s value.
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