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, 3-bathroom townhouse of 117 m², energy rating C. Located on urbanização Quinta Formosa, Almancil parish, Loulé municipality, Faro district. This townhouse boasts strong rental potential due to its prime location near Quinta do Lago's luxury amenities and vibrant nightlife, making it appealing for both permanent living and vacation rentals.
The valuation. The asking price of €1,375,000 sits €131,122 (10.5%) above the fair value of €1,243,878, making the property overpriced in the current market.
Fair value modelled at €1,243,878 from 6 comparable sales in the area. Asking €1,375,000 sits €131,122 (10.5%) above — overpriced versus fair value.
Asking €1,375,000 versus the urbanização Quinta Formosa area baseline of €1,163,343 (€9,943/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 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 €1,163,343, adjusted for condition and micro-location, gives a modelled fair value of €1,243,878 (€10,631/m²), a €131,122 (10.5%) gap versus the €1,375,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Quinta Formosa | Subject | €1,375,000 | €11,752 | — | 72 | 70 |
| Almancil · 28bcd4 | Active | €1,700,000 | €12,687 | 8.0% | 75 | 69 |
| Almancil · 93850d | Active | €1,450,000 | €11,069 | 5.8% | — | 73 |
| Almancil · 19f59a | Active | €2,600,000 | €14,689 | 25.0% | 72 | 67 |
| Almancil · d7a3ff | Active | €1,390,000 | €9,789 | 16.7% | 84 | 70 |
| Median comp | €1,575,000 | €11,878 | 1.1% | 75 | 70 |
Short-term vacation rental While Almancil is attractive due to its proximity to tourist hotspots in the Algarve, the property’s fair value is €1,243,878, indicating it is overpriced by 10.5%. With a gross yield of only 2.4%, the potential returns do not justify the investment in a short-term rental strategy. Long-term rental The high entry price of €1,375,000 reflects a valuation concern as it exceeds the fair market value by 10.5%. Given the gross yield of 2.4%, a long-term rental strategy may not deliver satisfactory cash flow for this property. Buy-and-hold Investing in this property as a buy-and-hold opportunity seems unwise, considering it is priced above its fair value by 10.5%. The 2.4% gross yield suggests minimal appreciation prospects and inadequate return potential over time.
Economic Vulnerability Risk The economic stability score of 60/100 indicates a moderate risk of economic downturns affecting property value and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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