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 villa of 119 m², built in 1991, energy rating C. Located on rua de Alfeição, Loulé (São Sebastião) parish, Loulé municipality, Faro district. The property features a cozy living room with a pellet stove and a sunny enclosed terrace, enhancing indoor comfort and providing a perfect winter relaxation spot.
The valuation. The asking price of €495,000 sits below the fair value of €564,243, indicating the property is subvalued by €69,243 (12.3%). Buy-to-flip angle. The resale strategy would capitalize on the underpriced property to achieve a profitable flip, leveraging its desirable location and high-quality finishes. Buy-to-let angle. Estimated rental income of €1,485 per month translates to a gross yield of 3.6%, positioning this villa as a viable long-term rental investment in a mixed neighborhood.
Fair value modelled at €564,243 from 6 comparable sales in the area. Asking €495,000 sits €69,243 (12.3%) below — the upside to fair value.
Asking €495,000 versus the rua de Alfeição area baseline of €452,335 (€3,801/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €452,335, adjusted for condition and micro-location, gives a modelled fair value of €564,243 (€4,742/m²), a €69,243 (12.3%) gap versus the €495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Alfeição | Subject | €495,000 | €4,160 | — | 75 | 64 |
| Loulé (São Sebastião) · cfe1d2 | Active | €1,750,000 | €6,679 | 60.6% | 90 | 70 |
| Loulé (São Sebastião) · 9116e5 | Active | €1,629,000 | €3,711 | 10.8% | 78 | 70 |
| Loulé (São Sebastião) · 19f43a | Active | €395,000 | €4,817 | 15.8% | 73 | 60 |
| Loulé (São Sebastião) · 911721 | Active | €1,929,000 | €7,841 | 88.5% | 80 | 69 |
| Median comp | €1,689,500 | €5,748 | 38.2% | 79 | 70 |
Long-term rental With a fair value of €564,243 and a listing price of €495,000, this 2-bed villa presents a gap suggesting potential for solid long-term rental income. The gross yield of 3.6% remains attractive, especially in a location heavily influenced by tourism, which can maintain steady demand. Short-term vacation rental The property’s proximity to the Algarve coast positions it well for short-term vacation rentals, appealing to seasonal tourists and maximizing income during peak tourist months. Given its valuation status, this villa could attract a higher rental rate, enhancing revenue potential significantly. Buy-and-hold With a 12.3% gap from fair value, acquiring this villa as a buy-and-hold investment allows for appreciation potential as the market stabilizes and grows, driven by ongoing demand for tourism real estate. Its condition rating of 78/100 indicates the property is in good shape, suggesting durability and lower maintenance costs in the long term.
Economic volatility risk The economic stability score of 55/100 suggests a potential for fluctuations in the local economy that could negatively impact rental income and 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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