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.
3-bedroom, 2-bathroom villa of 138 m², built in 1900, energy rating C. Located on avenida Cerro da Vila, 2A, Quarteira parish, Loulé municipality, Faro district. This villa boasts proximity to both the beach and Vilamoura Marina, making it an ideal location for leisure and outdoor activities.
The valuation. The asking price of €950,000 sits €194,191 below the fair value of €1,144,191, indicating that this property is subvalued by 17.0%. This presents a significant opportunity for prospective buyers. Buy-to-flip angle. A buy-and-flip strategy could capitalize on the attractive pricing by renovating the villa and positioning it for resale, potentially achieving a higher market price. This could yield a substantial profit due to the current undervaluation. Buy-to-let angle. With an estimated gross yield of 3% from long-term rentals, generating around €2,375 per month is feasible, making this villa a strong option for rental income in Algarve's popular market.
Fair value modelled at €1,144,191 from 4 comparable sales in the area. Asking €950,000 sits €194,191 (17.0%) below — the upside to fair value.
Asking €950,000 versus the avenida Cerro da Vila, 2A area baseline of €1,141,780 (€8,274/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €1,141,780, adjusted for condition and micro-location, gives a modelled fair value of €1,144,191 (€8,291/m²), a €194,191 (17.0%) gap versus the €950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida Cerro da Vila, 2A | Subject | €950,000 | €6,884 | — | 77 | 66 |
| largo dos Três Caminhos | Active | €2,500,000 | €8,621 | 25.2% | 80 | 70 |
| rua Volta do Lince, 6 | Active | €1,250,000 | €7,962 | 15.7% | 78 | 74 |
| rua da Guatemala | Active | €1,350,000 | €10,887 | 58.1% | 80 | 74 |
| Quarteira · 96c6de | Active | €1,100,000 | €7,285 | 5.8% | 70 | 61 |
| Median comp | €1,300,000 | €8,292 | 20.4% | 79 | 72 |
Short-term vacation rental The 3-bed villa in Quarteira represents an attractive opportunity for a short-term vacation rental strategy, with a fair value of €1,144,191 indicating a potential return on investment despite its listing price of €950,000. The region's appeal as a tourist destination supports strong occupancy rates, pushing the yield to 3%, which can be enhanced through short-term rentals. Long-term rental This property is also suitable for a long-term rental strategy, as its fair value of €1,144,191 suggests an inherent stability that can attract quality tenants in an area where housing demand remains high. Given its decent condition rating of 80/100, this villa can provide consistent cash flow at a competitive 3% yield in the ongoing rental market. Buy-and-hold As a buy-and-hold investment, this villa offers substantial upside with its fair value exceeding the listing price by 17%, indicating a strong appreciation potential. The growing demand in the Algarve, reinforced by continuous tourism influx, makes this property a solid long-term asset in a well-regarded locale, with a neighborhood quality score of 66/100 supporting its sustained value growth.
Economic Vulnerability The low economic stability score of 50/100 indicates a significant risk of market fluctuations that could impact property values.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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