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.
2-bedroom, 2-bathroom penthouse of 120 m², built in 2003. Located Quarteira parish, Loulé municipality, Faro district. Noteworthy Features: The penthouse features a private balcony with breathtaking panoramic views and is currently undergoing renovation to showcase elegant herringbone wood floors throughout.
The valuation. The asking price of €760,000 exceeds the fair value of €610,830 by €149,170 (24.4%), indicating the property is overpriced. This disparity suggests a lack of alignment between market perceptions and actual valuation.
Fair value modelled at €610,830 from 6 comparable sales in the area. Asking €760,000 sits €149,170 (24.4%) above — overpriced versus fair value.
Asking €760,000 versus the Quarteira, Loulé, Faro area baseline of €593,358 (€4,945/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 is above the parish average, lifting 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 €593,358, adjusted for condition and micro-location, gives a modelled fair value of €610,830 (€5,090/m²), a €149,170 (24.4%) gap versus the €760,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Quarteira · f14e13 | Subject | €760,000 | €6,333 | — | 80 | 72 |
| avenida da Marina | Active | €580,000 | €5,088 | 19.7% | 78 | 68 |
| Quarteira · 4a4482 | Active | €494,000 | €5,093 | 19.6% | 75 | 71 |
| caminho do Lago, 4 | Active | €469,000 | €4,737 | 25.2% | 80 | 81 |
| avenida da Marina | Active | €580,000 | €5,088 | 19.7% | 74 | 68 |
| Median comp | €537,000 | €5,088 | 19.7% | 77 | 70 |
Short-term vacation rental The 2-bed penthouse in Quarteira, priced at €760,000, shows a notable gap of 24.4% from its fair value, making it an overpriced investment for short-term vacation rentals. With a gross yield of only 2.5%, the potential return on investment appears limited in the competitive tourism market of the Algarve. Long-term rental As an overpriced property, the 2-bed penthouse does not align well with the long-term rental market's performance, where fair value is significantly lower at €610,830. Additionally, a gross yield of 2.5% suggests that this investment may not generate sufficient cash flow to cover ongoing expenses, particularly given the neighbourhood's lower quality rating of 72/100. Buy-and-hold Investing in this 2-bed penthouse as a buy-and-hold strategy may not be prudent, given its current listing price of €760,000, which is significantly above fair value. Market dynamics in Quarteira, combined with a low yield of 2.5%, put long-term appreciation under question, especially since the condition of the property is rated at 83/100 and neighbourhood amenities may not attract high tenant quality. Not ideal for student housing This property is not suitable for student housing due to its price point and the limited demand for educational facilities that cater beyond basic schooling, impacting potential tenant quality. The neighbourhood's profile provides little incentive for education-focused residents, thus making it a poor fit. Not ideal for luxury market Positioned in the overpriced bracket, the penthouse does not meet the criteria for the luxury market, where premium pricing must reflect exceptional value and exclusivity. Given its current valuation gap and average neighbourhood scores, it lacks the attributes that high-net-worth individuals typically seek in luxury properties.
Economic Vulnerability With an economic stability score of 65/100, there is a risk of fluctuations in local economic conditions that could negatively impact property values or rental demand.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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