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, 2-bathroom house of 250 m², built in 1950, energy rating F. Located Almancil parish, Loulé municipality, Faro district. Noteworthy Features: This property includes a versatile outdoor area equipped with a water borehole for irrigation and a variety of fruit trees, enhancing its potential for agricultural use.
The valuation. The asking price of €400,000 is significantly below the fair value of €728,795, representing a remarkable undervaluation of €328,795 (45.1%). This positions the property as a strong investment opportunity. Buy-to-flip angle. Considering the gross yield potential, a strategy focused on short-term vacation rentals could yield attractive resale opportunities as tourism in the region thrives, optimizing profit margins on a flip scenario. Buy-to-let angle. With an estimated rental income of approximately €4,000 per month, the property offers a gross yield of 12%, making it an appealing option for long-term buy-and-hold investors in a market with high housing demand.
Fair value modelled at €728,795 from 6 comparable sales in the area. Asking €400,000 sits €328,795 (45.1%) below — the upside to fair value.
Asking €400,000 versus the Almancil, Loulé, Faro area baseline of €1,420,815 (€5,683/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 35/100 is below the parish average, reducing 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 €1,420,815, adjusted for condition and micro-location, gives a modelled fair value of €728,795 (€2,915/m²), a €328,795 (45.1%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Almancil · f10cd6 | Subject | €400,000 | €1,600 | — | 30 | 62 |
| Almancil · ba3db6 | Active | €190,000 | €2,043 | 27.7% | 20 | 59 |
| Almancil · 388e62 | Active | €350,000 | €3,431 | 114.5% | 45 | 64 |
| Santa Bárbara de Nexe · 4b8a55 | Active | €997,500 | €1,915 | 19.7% | — | 65 |
| Almancil · 5ed0c2 | Active | €435,000 | €4,350 | 171.9% | 52 | 63 |
| Median comp | €392,500 | €2,737 | 71.1% | 45 | 64 |
Short-term vacation rental The property in Almancil presents a compelling opportunity for short-term vacation rentals, capitalizing on its proximity to the Algarve, a region known for its consistent tourism demand. With a market gap of 45.1% against its fair value, the property has the potential for strong rental yields of 12% gross, enhancing its attractiveness. Buy-and-hold Investing in this 4-bed house for long-term appreciation is supported by the significant undervaluation relative to the fair value. The robust demand for housing in the area, driven by seasonal tourism, suggests solid future returns on investment through property value increases. Family rental This property could serve as an ideal family rental due to its size and location in a neighborhood rated 62/100, showcasing a decent living environment. The high gross yield of 12% reflects favorable cash flow potential while maintaining an attractive investment profile based on the fair value gap. Not ideal for: Student housing, Luxury market The property is not suited for student housing, as its location and characteristics do not align with typical student rental demands. Additionally, it is not positioned well within the luxury market, limiting potential rent prices and tenant quality in that segment.
Tenant turnover risk The tenant stability score of 65/100 indicates a moderate likelihood of tenant turnover, which could affect cash flow and occupancy rates negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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