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, 4-bathroom house of 409 m², energy rating C. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy features: The property boasts a handcrafted Japanese cedar kitchen island and an exclusive viewpoint for breathtaking sunset views over the Algarve, enhancing its luxurious appeal.
The valuation. The asking price of €2,250,000 is 9.4% below the fair value of €2,484,443, indicating it is priced competitively given the current market conditions. This valuation reflects a reasonable opportunity within the assessed price range. Buy-to-flip angle. A buy-to-flip strategy can be executed here by capitalizing on the property's high-end materials and sophisticated design, potentially increasing its resale value significantly after minor renovations or staging. Targeting upscale buyers in the tourism-centric market may yield a profitable return. Buy-to-let angle. With a gross yield of 3.6% from an estimated monthly rental income of €6,750, this property can serve as an effective buy-to-let investment. The location's reliance on tourism enhances the potential for both short-term vacation rentals and steady long-term rental income.
Fair value modelled at €2,484,443 from 6 comparable sales in the area. Asking €2,250,000 sits €234,443 (9.4%) below — the upside to fair value.
Asking €2,250,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €2,046,103 (€5,003/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €2,046,103, adjusted for condition and micro-location, gives a modelled fair value of €2,484,443 (€6,074/m²), a €234,443 (9.4%) gap versus the €2,250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 834096 | Subject | €2,250,000 | €5,501 | — | 80 | 64 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 69.8% | 78 | 63 |
| Loulé (São Sebastião) · 6d5523 | Active | €1,800,000 | €6,000 | 9.1% | 80 | 70 |
| Loulé (São Clemente) · cfe05d | Active | €1,900,000 | €6,149 | 11.8% | 80 | 66 |
| Loulé (São Clemente) · 8750e7 | Active | €1,900,000 | €3,442 | 37.4% | 75 | 66 |
| Median comp | €1,900,000 | €6,075 | 10.4% | 79 | 66 |
Short-term vacation rental Given the coastal Algarve location, the property could benefit from short-term vacation rentals, leveraging the area's strong tourism demand. However, with a gross yield of only 3.6%, the current price reflects a fair valuation rather than a compelling investment opportunity. Long-term rental The property is situated in a location that may attract long-term tenants, but the 64/100 neighborhood rating suggests potential challenges in tenant quality and retention. While the valuation at €2,250,000 aligns closely with fair market expectations, it does not present an exceptional long-term rental investment. Buy-and-hold A buy-and-hold strategy may seem reasonable due to the property’s 85/100 condition score, indicating that minimal immediate repairs are needed. However, the fair value status, with a mere 9.4% gap to the market listing, signals that investors should exercise caution before committing to a long-term hold in this market.
Economic Vulnerability The economic stability score of 55/100 suggests a higher risk of market fluctuations that could negatively impact property values and rental income stability.
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