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 house of 128 m² on the 1st floor, built in 1997, energy rating E. Located on rua das Mélias, Quarteira parish, Loulé municipality, Faro district. Features: The property includes a tiled barbecue area on the terrace, enhancing outdoor dining and entertainment options, and both ground-floor bedrooms feature versatile design with a mezzanine bed option.
The valuation. The asking price of €599,000 is significantly above the fair value of €530,633, resulting in an overpriced assessment of €68,367 (12.9%). This discrepancy requires careful consideration by prospective investors. Buy-to-flip angle. A buy-to-flip strategy would necessitate renovations to enhance appeal, aiming for a resale price that exceeds the total acquisition and renovation costs, taking advantage of the property's high-quality finishes. Buy-to-let angle. A buy-to-let approach could capitalize on the estimated monthly rental income of €2,047, yielding a gross yield of 4.1%, particularly appealing in a tourism-focused area like Algarve.
Fair value modelled at €530,633 from 6 comparable sales in the area. Asking €599,000 sits €68,367 (12.9%) above — overpriced versus fair value.
Asking €599,000 versus the rua das Mélias area baseline of €509,105 (€3,977/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 is above the parish average, lifting 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 €509,105, adjusted for condition and micro-location, gives a modelled fair value of €530,633 (€4,146/m²), a €68,367 (12.9%) gap versus the €599,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Mélias | Subject | €599,000 | €4,680 | — | 76 | 68 |
| rua das Mélias | Active | €599,000 | €3,791 | 19.0% | 76 | 70 |
| caminho das Andorinhas | Active | €699,500 | €3,429 | 26.7% | 68 | 65 |
| Quarteira · 26209d | Active | €1,030,000 | €3,433 | 26.6% | 72 | 64 |
| avenida Tivoli S / N | Active | €750,000 | €4,630 | 1.1% | 78 | 73 |
| Median comp | €724,750 | €3,612 | 22.8% | 74 | 68 |
Short-term vacation rental This property is overpriced at €599,000 with a fair value of €530,633, suggesting that investors may struggle to achieve a solid return on investment in the short-term rental market. The gross yield of 4.1% also indicates that potential returns do not compensate for the high entry price in a tourist-heavy area like Quarteira. Buy-and-hold Given the high listing price of €599,000 compared to the fair value of €530,633, this investment may not provide the necessary appreciation over time for a quality buy-and-hold strategy. Furthermore, with a condition rating of 81/100, any future repair and maintenance costs could further diminish returns in the long run. Long-term rental The long-term rental strategy would be challenging for this property priced at €599,000, as it is 12.9% above the assessed fair value of €530,633. With the neighborhood rating at 68/100, tenant quality may not justify the premium paid, impacting cash flow and overall investment performance.
Economic vulnerability With an economic stability score of 65/100, there is a risk that local economic fluctuations could negatively impact property values and rental demand.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
