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 house of 191 m², energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The property's design allows for separate external access to the first floor, enabling independent usage or potential rental income from both levels.
The valuation. The asking price of €750,000 sits approximately 2.1% above the fair value of €734,262, indicating that the property is fairly valued in the current market. This slight premium suggests a competitive environment without excessive inflation. Buy-to-flip angle. A buy-to-flip strategy could yield a modest profit if renovations enhance value; however, local market trends would need careful analysis to ascertain potential resale gains after necessary refurbishments. Buy-to-let angle. With a gross yield of 5.7% and an estimated rental income of €3,562 per month, this property can serve as a solid long-term investment, particularly in the tourist-heavy area of Algarve.
Fair value modelled at €734,262 from 6 comparable sales in the area. Asking €750,000 sits €15,738 (2.1%) above — overpriced versus fair value.
Asking €750,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €576,498 (€3,018/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €576,498, adjusted for condition and micro-location, gives a modelled fair value of €734,262 (€3,844/m²), a €15,738 (2.1%) gap versus the €750,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 831355 | Subject | €750,000 | €3,927 | — | 72 | 61 |
| Loulé (São Sebastião) · a79ec0 | Active | €495,000 | €3,667 | 6.6% | 75 | 64 |
| Loulé (São Sebastião) · 1f3391 | Active | €559,000 | €3,538 | 9.9% | 62 | 67 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 10.0% | 72 | 71 |
| rua de Alfeição | Active | €495,000 | €4,160 | 5.9% | 75 | 64 |
| Median comp | €527,000 | €3,603 | 8.3% | 74 | 66 |
Short-term vacation rental The property’s location in a tourist-heavy area of Algarve suggests strong demand for short-term vacation rentals, making it an attractive option. However, given its fair valuation and condition rating of 75/100, it may not yield the returns one would expect from a similar investment in a more undervalued property. Buy-and-hold Investing in this property for a buy-and-hold strategy could provide steady returns, particularly with a gross yield of 5.7%. Nevertheless, with the property valued fairly at €750,000 and a neighborhood score of 61/100, the appreciation potential may be limited compared to properties that are more economically attractive. Family rental As a family rental investment, this property offers adequate amenities and safety typical of the region's tourism-driven economy. However, with its fair valuation relative to the average market and condition scores, the investment may not provide the level of growth or rental income that could be achieved elsewhere in a more favorable market environment.
Economic and Tenant Instability Risk The scores of 60/100 for both economic stability and tenant stability indicate a heightened risk of fluctuations in rental income and potential vacancies.
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