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 286 m², built in 1994, energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: This property includes two independent ruins on the plot, presenting a unique opportunity for further development into additional sea view homes. Potential Highlights: The expansive land features regional fruit trees, enhancing both aesthetic value and potential agricultural use.
The valuation. The asking price of €900,000 falls short of the fair value of €1,061,660, indicating an undervalued position of €161,660, or 15.2%. This presents an opportunity for a savvy investor.
Fair value modelled at €1,061,660 from 6 comparable sales in the area. Asking €900,000 sits €161,660 (15.2%) below — the upside to fair value.
Asking €900,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €915,920 (€3,203/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 64/100 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 €915,920, adjusted for condition and micro-location, gives a modelled fair value of €1,061,660 (€3,712/m²), a €161,660 (15.2%) gap versus the €900,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 3a7181 | Subject | €900,000 | €3,147 | — | 70 | 70 |
| rua de Vale Telheiro | Active | €629,000 | €3,534 | 12.3% | 72 | 71 |
| beco do Brotual S / N | Active | €579,000 | €2,373 | 24.6% | 70 | 74 |
| rua de Vale Telheiro | Active | €1,350,000 | €3,890 | 23.6% | 75 | 67 |
| Loulé (São Sebastião) · 99f3a3 | Active | €820,000 | €3,142 | 0.2% | 74 | 63 |
| Median comp | €724,500 | €3,338 | 6.1% | 73 | 69 |
Short-term vacation rental The property offers a compelling opportunity for short-term vacation rentals due to its proximity to Algarve’s thriving tourism sector. With a fair value surpassing the listing price by 15.2%, it presents an attractive investment potential in a popular tourist destination. Long-term rental This property is well-suited for long-term rental, benefiting from a stable tenant base drawn to the appealing amenities and strong expatriate community in Loulé. As the listing price is underpriced relative to its fair value, it provides an opportunity for consistent rental income in an economically vibrant area. Buy-and-hold Investing in this property as a buy-and-hold strategy is attractive given its fair value is considerably higher than the asking price. With the potential for appreciation in a desirable location, this investment aligns well with long-term growth objectives, leveraging Algarve's economic stability and tourism appeal.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk of fluctuations in the local market, which could impact rental income stability and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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