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, 3-bathroom villa of 189 m², built in 2000, energy rating E. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. The property features charming arched loggias on both floors, providing shaded outdoor spaces ideal for relaxing and entertaining in the traditional Algarve style.
The valuation. The asking price of €795,000 is underpriced by €219,217 (21.6%) compared to its fair value of €1,014,217. This presents a favorable opportunity for prospective investors seeking value. Buy-to-flip angle. The resale strategy involves capitalizing on the property’s underpricing by making minor updates to the bathrooms and then listing it in a booming market. This approach could yield significant returns, given the demand in the Algarve region. Buy-to-let angle. A buy-to-let strategy focusing on short-term vacation rentals is viable, as the estimated rental income is approximately €2,319/month, resulting in a gross yield of 3.5%. This property’s location enhances its attractiveness for tourists.
Fair value modelled at €1,014,217 from 6 comparable sales in the area. Asking €795,000 sits €219,217 (21.6%) below — the upside to fair value.
Asking €795,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €897,783 (€4,750/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 74/100 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 €897,783, adjusted for condition and micro-location, gives a modelled fair value of €1,014,217 (€5,366/m²), a €219,217 (21.6%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 5e6416 | Subject | €795,000 | €4,206 | — | 70 | 61 |
| Loulé (São Clemente) · 65a743 | Active | €380,000 | €6,552 | 55.8% | 80 | 60 |
| Loulé (São Clemente) · 937444 | Active | €1,950,000 | €5,462 | 29.9% | 72 | 71 |
| autoestrada A22 | Active | €1,950,000 | €5,270 | 25.3% | 78 | 61 |
| caminho Covas da Areia | Active | €1,050,000 | €5,000 | 18.9% | 70 | 71 |
| Median comp | €1,500,000 | €5,366 | 27.6% | 75 | 66 |
Short-term vacation rental The 4-bed villa presents a strong opportunity for short-term vacation rental in the Algarve, capitalizing on the region's tourism. With a fair value gap of 21.6%, the potential for rental income enhances the attractiveness of this investment. Buy-and-hold Investing in this property can lead to long-term appreciation as it is currently priced below its fair value of €1,014,217. The solid condition rating of 74/100 suggests that the villa is well-maintained, making it a reliable asset for buy-and-hold strategies. Value-add renovation This villa, with a fair value significantly higher than its listing price, offers potential for value-add renovations to increase both rental income and property value. Improvements could elevate its neighbourhood score as well, enhancing overall investment returns.
Moderate Economic and Tenant Risk: With both economic and tenant stability scores at 55/100, there is a significant risk of fluctuating income and potential vacancy issues, affecting financial performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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