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, 4-bathroom penthouse of 250 m², built in 2018, energy rating A. Located on avenida da Praia, 701, Almancil parish, Loulé municipality, Faro district. This penthouse features a private rooftop terrace with panoramic ocean views, perfect for outdoor entertaining and relaxation, enhancing the coastal lifestyle experience.
The valuation. The asking price of €2,995,000 is significantly above the fair value of €1,476,328, representing an overvaluation of €1,518,672 (102.9%). This property is clearly overpriced and does not present a sound investment opportunity.
Fair value modelled at €1,476,328 from 6 comparable sales in the area. Asking €2,995,000 sits €1,518,672 (102.9%) above — overpriced versus fair value.
Asking €2,995,000 versus the avenida da Praia, 701 area baseline of €1,092,057 (€4,368/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €1,092,057, adjusted for condition and micro-location, gives a modelled fair value of €1,476,328 (€5,905/m²), a €1,518,672 (102.9%) gap versus the €2,995,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida da Praia, 701 | Subject | €2,995,000 | €11,980 | — | 85 | 75 |
| avenida da Praia | Active | €1,599,000 | €11,028 | 8.0% | 82 | 65 |
| rua da Laranjeira S / N | Active | €950,000 | €5,278 | 55.9% | 80 | 72 |
| Almancil · 6a9103 | Active | €750,000 | €6,944 | 42.0% | 76 | 70 |
| estrada da Horta | Active | €895,000 | €6,533 | 45.5% | 78 | 76 |
| Median comp | €922,500 | €6,739 | 43.8% | 79 | 71 |
Short-term vacation rental The high listing price of €2,995,000 significantly overshoots the fair value of €1,476,328, indicating that this property is overpriced for the short-term vacation rental market. Given the yield of 0% gross, the current valuation does not support a viable investment in this strategy despite the seasonal demand in Algarve. Buy-and-hold With a substantial gap of 102.9% between the listing price and the fair value, investing in this property for long-term appreciation is not advisable as it is clearly overpriced. The strong tourist infrastructure in Algarve does not justify this elevated entry cost, which may hinder future returns. Luxury market Though the penthouse stands out in terms of condition and neighborhood rating, the asking price of €2,995,000 is indicative of an overpriced position that may struggle to attract buyers in the luxury market. At a fair value of €1,476,328, potential investors might find better opportunities in this sector that offer more reasonable pricing relative to quality. Not ideal for: Student housing This property is not suitable for student housing due to its prime luxury designation and high price point, aligning poorly with the financial realities of student tenants. Additionally, the pricing dynamics indicate an overall overpriced market, making it an unlikely candidate for this demographic's needs.
Tenant turnover risk High tenant turnover may occur as indicated by a relatively lower economic stability score of 65/100, potentially impacting rental income stability and property valuation over time.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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