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 303 m², built in 2020, energy rating C. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: This property boasts a heated swimming pool and panoramic mountain views, enhancing its appeal as a peaceful retreat while still being conveniently located near Loulé's center.
The valuation. The asking price of €950,000 sits €248,733 (20.7%) below its fair value of €1,198,733. This property is indeed underpriced, presenting a compelling opportunity for investors. Buy-to-flip angle. The plan for resale involves leveraging the upscale finishes and design elements to attract buyers seeking premium properties, capitalizing on the Algarve’s strong tourism market. Buy-to-let angle. With an estimated rental income of €3,800/month, the gross yield stands at 4.8%, making this property appealing for long-term rental strategies in a desirable location.
Fair value modelled at €1,198,733 from 6 comparable sales in the area. Asking €950,000 sits €248,733 (20.7%) below — the upside to fair value.
Asking €950,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €865,579 (€2,857/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 €865,579, adjusted for condition and micro-location, gives a modelled fair value of €1,198,733 (€3,956/m²), a €248,733 (20.7%) gap versus the €950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 3a716b | Subject | €950,000 | €3,135 | — | 82 | 66 |
| rua de Vale Telheiro | Active | €1,350,000 | €3,890 | 24.1% | 75 | 67 |
| Loulé (São Sebastião) · 99f3a3 | Active | €820,000 | €3,142 | 0.2% | 74 | 63 |
| Loulé (São Sebastião) · efdd77 | Active | €2,200,000 | €4,022 | 28.3% | 80 | 66 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 12.7% | 72 | 71 |
| Median comp | €1,085,000 | €3,712 | 18.4% | 75 | 67 |
Short-term vacation rental The property’s location in the Algarve and its 4.8% gross yield make it a solid candidate for a short-term vacation rental strategy, capitalizing on the region's steady tourism demand. With a gap of 20.7% below fair value, it presents an attractive opportunity to generate rental income that exceeds local averages. Buy-and-hold Investing in this property as a buy-and-hold strategy is supported by its strong long-term appreciation potential, given the fair value assessment that exceeds the current listing price by 20.7%. This positioning will likely yield significant capital gains over time, alongside a steady rental income from its favorable location. Value-add renovation This property offers potential for a value-add renovation strategy, particularly given its condition rating of 85/100 and a current listing below fair value. Enhancements made to this home could significantly increase its rental value and appeal in the competitive housing market of Loulé. Not ideal for student housing The property’s location and characteristics make it unsuitable for student housing, as the surrounding area lacks sufficient amenities and economic activity to support a student demographic. Additionally, the local market does not cater to long-term tenant needs typically sought in student housing arrangements. Not ideal for luxury market Given its moderate neighborhood rating of 66/100 and overall property features, this listing does not align with the expectations and standards typically pursued in the luxury market segment. The investment would stray from the high-end buyer profile, making it unsuitable for luxury-focused strategies.
Economic Vulnerability With an economic stability score of 55/100, there is a significant risk that local economic conditions may adversely impact property value and rental income.
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