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.
4-bedroom, 5-bathroom villa of 284 m², energy rating C. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The property includes a spacious outdoor entertainment area with an infinity pool and multiple terraces, all offering breathtaking views of the surrounding countryside and distant sea horizon.
The valuation. The asking price of €2,495,000 sits significantly above the fair value of €1,633,174, by €861,826 (52.8%). This property is considered overpriced. Buy-to-flip angle. A potential resale strategy could include renovating to enhance appeal, targeting luxury buyers in the Algarve. Margins may be tight given the high initial cost. Buy-to-let angle. With an estimated rental income of €4,990/month, the gross yield stands at 2.4%. This may attract long-term tenants seeking quality housing in a popular tourist area.
Fair value modelled at €1,633,174 from 6 comparable sales in the area. Asking €2,495,000 sits €861,826 (52.8%) above — overpriced versus fair value.
Asking €2,495,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,309,381 (€4,610/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 €1,309,381, adjusted for condition and micro-location, gives a modelled fair value of €1,633,174 (€5,751/m²), a €861,826 (52.8%) gap versus the €2,495,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · efdd49 | Subject | €2,495,000 | €8,785 | — | 82 | 75 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 6.3% | 78 | 63 |
| Loulé (São Sebastião) · 3df382 | Active | €2,950,000 | €8,676 | 1.2% | 95 | 79 |
| Loulé (São Sebastião) · 834096 | Active | €2,250,000 | €5,501 | 37.4% | 80 | 64 |
| Loulé (São Clemente) · 8750e7 | Active | €1,900,000 | €3,442 | 60.8% | 75 | 66 |
| Median comp | €2,297,500 | €7,089 | 19.3% | 79 | 65 |
Short-term vacation rental The property is overpriced by 52.8%, making it a risky investment for short-term vacation rentals despite the strong demand in the popular Algarve tourist area. With a low gross yield of 2.4%, the financial return does not justify the elevated asking price. Buy-and-hold Given the property’s significant price above fair value, it lacks the attractive upside potential typically associated with buy-and-hold strategies, particularly in a fluctuating tourism market. The yield of 2.4% indicates limited income generation compared to its high cost. Luxury market While positioned in the luxury segment of a tourist-friendly region, the asking price of €2,495,000 suggests it is overpriced by 52.8%, challenging its competitiveness in the luxury market. The combination of the high price and modest yield of 2.4% raises concerns about long-term appreciation and buyer interest.
Economic vulnerability With an economic stability score of 65/100, there is a heightened risk of market fluctuations impacting property values and rental income stability.
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