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.
5-bedroom, 1-bathroom house of 298 m², energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: This property showcases original Algarve architectural elements like traditional stonework and a historic smokehouse chimney, alongside a flat garden with various fruit trees.
The valuation. The asking price of €470,000 is significantly lower than the fair value of €746,137, representing a discount of €276,137 (37.0%). This property is underpriced and presents a compelling investment opportunity.
Fair value modelled at €746,137 from 6 comparable sales in the area. Asking €470,000 sits €276,137 (37.0%) below — the upside to fair value.
Asking €470,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €768,972 (€2,580/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 39/100 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 €768,972, adjusted for condition and micro-location, gives a modelled fair value of €746,137 (€2,504/m²), a €276,137 (37.0%) gap versus the €470,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 3a71a8 | Subject | €470,000 | €1,577 | — | 34 | 70 |
| Loulé (São Sebastião) · dee644 | Active | €187,500 | €884 | 43.9% | 30 | 60 |
| Loulé (São Sebastião) · 6c7797 | Active | €290,000 | €2,339 | 48.3% | 38 | 57 |
| Loulé (São Sebastião) · dee435 | Active | €395,000 | €2,669 | 69.2% | 25 | 73 |
| Loulé (São Sebastião) · 626f87 | Active | €345,000 | €1,797 | 13.9% | — | 71 |
| Median comp | €317,500 | €2,068 | 31.1% | 30 | 66 |
Short-term vacation rental This property in Loulé presents a significant opportunity for short-term vacation rentals with a fair value of €746,137 compared to the listing price of €470,000, resulting in a gap of 37.0%. Given its strong yield of 12.7% gross and the attractive tourist market in the Algarve region, this investment is poised for high returns. Buy-and-hold Acquiring this 5-bed house for €470,000 offers a compelling buy-and-hold strategy, given its fair value assessment of €746,137, indicating it is subvalued. With a robust gross yield of 12.7%, this property stands to appreciate significantly over time as the local market thrives. Family rental Investing in this property as a family rental is advantageous, with a fair market value of €746,137 versus its listing price of €470,000, reflecting a substantial 37.0% discrepancy. The quality of the neighborhood, rated at 70/100, supports a stable tenant base, enhancing long-term rental potential.
Market Vulnerability The property faces a potential risk due to a moderate economic stability score of 65, which may indicate susceptibility to market fluctuations and economic downturns affecting rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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