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, 1-bathroom country_house of 105 m², built in 1937, energy rating F. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This property includes an approved construction project for a new 4-bedroom house and is equipped with a functional water well for irrigation, enhancing its agricultural potential.
The valuation. The asking price of €430,000 is significantly above fair value, which sits at €323,135, creating an overvaluation of €106,865 (33.1%). This property is considered overpriced in its current market context.
Fair value modelled at €323,135 from 6 comparable sales in the area. Asking €430,000 sits €106,865 (33.1%) above — overpriced versus fair value.
Asking €430,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €292,951 (€2,790/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 65/100 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 €292,951, adjusted for condition and micro-location, gives a modelled fair value of €323,135 (€3,077/m²), a €106,865 (33.1%) gap versus the €430,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · efdc2f | Subject | €430,000 | €4,095 | — | 65 | 67 |
| Loulé (São Clemente) · 93881d | Active | €495,000 | €3,486 | 14.9% | 68 | 65 |
| Loulé (São Sebastião) · d74876 | Active | €1,500,000 | €2,669 | 34.8% | — | 66 |
| Loulé (São Clemente) · f14e0c | Active | €525,000 | €2,512 | 38.7% | 70 | 67 |
| rua Engenheiro Duarte Pacheco, 144 | Active | €320,000 | €2,520 | 38.5% | 85 | 70 |
| Median comp | €510,000 | €2,595 | 36.6% | 70 | 67 |
Short-term vacation rental The property is overpriced by 33.1%, which diminishes its attractiveness in a highly competitive market for vacation rentals in the Algarve. With a gross yield of only 4% and a fair value significantly lower than the listing price, potential returns on investment would be inadequate. Long-term rental Given its current asking price of €430,000, this property is overpriced relative to its fair value of €323,135, resulting in diminished appeal for long-term rental. While the neighborhood has decent ratings for amenities and tenant quality, the high entry price could limit profitability over time. Buy-and-hold The property’s market listing of €430,000 is overvalued by 33.1% compared to its fair value, which could restrict growth potential in a buy-and-hold strategy. With a condition rating of 65/100, the investment does not justify the high initial cost, presenting a risk of prolonged underperformance. Not ideal for This property is not suitable for student housing or the luxury market due to its average condition and neighborhood ratings. Its high price point and lower-than-expected rental yields further suggest it would not attract the intended tenant demographics in those categories.
Economic Volatility The economic stability score of 65/100 indicates potential fluctuations in market conditions, which may affect rental income reliability. The tenant stability score of 60/100 suggests higher turnover rates, posing risks to consistent cash flow.
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