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.
5-bedroom, 6-bathroom villa of 535 m², built in 1900, energy rating D. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Property Feature: The villa includes a dedicated cinema room and a spacious covered barbecue terrace, enhancing entertainment options while maximizing outdoor living space in a picturesque setting. Investment Insight: With an estimated renovation cost of €200,000, this property has the potential to significantly increase its value upon completion.
The valuation. The asking price of €2,240,000 sits 29.7% below the fair value of €3,186,045, indicating this property is underpriced. This substantial gap presents a notable opportunity for prospective buyers. Buy-to-flip angle. Given its high-quality finishes and desirable location, the villa can be effectively renovated and marketed for resale at a competitive price, capitalizing on the growing demand in Algarve. An attractive profit could be realized upon a successful flip. Buy-to-let angle. With an estimated monthly rental income of €10,827, the property offers a gross yield of 5.8%, making it a strong candidate for long-term rental investments. Its prime location in a tourist-friendly neighborhood further enhances its rental appeal.
Fair value modelled at €3,186,045 from 5 comparable sales in the area. Asking €2,240,000 sits €946,045 (29.7%) below — the upside to fair value.
Asking €2,240,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €2,791,926 (€5,219/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €2,791,926, adjusted for condition and micro-location, gives a modelled fair value of €3,186,045 (€5,955/m²), a €946,045 (29.7%) gap versus the €2,240,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 15e0c1 | Subject | €2,240,000 | €4,187 | — | 76 | 60 |
| Almancil · 6d5135 | Active | €1,995,000 | €5,955 | 42.2% | 84 | 70 |
| Almancil · cd0905 | Active | €3,495,000 | €7,206 | 72.1% | 88 | 64 |
| Almancil · 388b83 | Active | €3,000,000 | €7,143 | 70.6% | — | 73 |
| Loulé (São Clemente) · 032472 | Active | €2,700,000 | €5,510 | 31.6% | 78 | 63 |
| Median comp | €2,850,000 | €6,549 | 56.4% | 84 | 67 |
Short-term vacation rental With a gross yield of 5.8%, this 5-bed villa in Loulé presents a compelling opportunity for short-term vacation rentals, capitalizing on the Algarve's growing tourism trend. The property is currently priced at €2,240,000, which is 29.7% below its fair value of €3,186,045, enhancing its attractiveness to investors seeking high-yield potential in a desirable location. Long-term rental The Loulé villa's size and condition score of 79/100 make it suitable for long-term rental, appealing to families seeking spacious accommodations in a safe area. With its market position at €2,240,000, which is significantly below the fair value of €3,186,045, the investment outlook remains favorable for steady rental income. Buy-and-hold This property’s combination of a solid 5.8% yield and a fair value gap of 29.7% signals significant potential for appreciation over time, making it an excellent buy-and-hold strategy in the Algarve. The villa's relatively low acquisition price compared to its fair value of €3,186,045 positions it well for long-term value growth amidst the area's increasing demand for high-quality real estate.
Economic Overdependence Risk: With an economic stability score of 50/100, there is a significant risk that unfavorable economic conditions could lead to increased vacancy rates, negatively impacting rental income reliability.
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
