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, 2-bathroom house of 195 m², built in 1994, energy rating C. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Substantial Privacy: Nestled on a vast 3,070m² lot, this property ensures complete seclusion while offering ample space for personalized outdoor amenities and enhancements.
The valuation. The asking price of €550,000 is significantly above the fair value of €423,239, representing an overvaluation of €126,761, or 30.0%. This discrepancy indicates that the property may not provide a sound investment opportunity in its current pricing position.
Fair value modelled at €423,239 from 6 comparable sales in the area. Asking €550,000 sits €126,761 (30.0%) above — overpriced versus fair value.
Asking €550,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €451,266 (€2,314/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 38/100 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 €451,266, adjusted for condition and micro-location, gives a modelled fair value of €423,239 (€2,170/m²), a €126,761 (30.0%) gap versus the €550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · a6d429 | Subject | €550,000 | €2,821 | — | 30 | 72 |
| Loulé (São Clemente) · 0019c0 | Active | €290,000 | €3,152 | 11.8% | 28 | 72 |
| Loulé (São Sebastião) · 3a71a8 | Active | €470,000 | €1,577 | 44.1% | 34 | 70 |
| Loulé (São Clemente) · 261d44 | Active | €280,000 | €2,545 | 9.8% | — | 68 |
| Loulé (São Clemente) · 6272ef | Active | €195,000 | €1,189 | 57.8% | — | 64 |
| Median comp | €285,000 | €2,061 | 26.9% | 31 | 69 |
Short-term vacation rental The property is priced at €550,000, which is 30% above its fair value of €423,239, indicating it is overpriced in the current market. While the Algarve boasts a strong tourist economy, the high listing price limits healthy profitability despite a gross yield of 4.9%. Long-term rental At €550,000, the house is overpriced by €126,761 compared to its fair value, making it a challenging investment for long-term rental returns. Though the area attracts quality tenants due to its attractiveness for expats and tourists, the price point is too steep to ensure a reliable return on investment. Buy-and-hold The listing price of €550,000 suggests a significant overvaluation of 30% against the fair value, which could lead to reduced capital appreciation over time. Given the subpar condition rating of 38/100, holding this asset may not yield the desired growth, especially in a competitive market.
Economic Vulnerability The economic stability score of 65/100 indicates potential fluctuations in market conditions that could impact rental income and property values negatively.
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
