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 villa of 147 m², built in 2001, energy rating B. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. This villa's landscape features a fully legalized heated pool with a retractable thermal cover and an established succulent garden, all supported by a dedicated automatic irrigation system.
The valuation. The asking price of €895,000 is significantly above the fair value of €715,027, resulting in an excess of €179,973 (25.2%). This property is categorized as overpriced.
Fair value modelled at €715,027 from 5 comparable sales in the area. Asking €895,000 sits €179,973 (25.2%) above — overpriced versus fair value.
Asking €895,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €596,385 (€4,057/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 is above the parish average, lifting 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 €596,385, adjusted for condition and micro-location, gives a modelled fair value of €715,027 (€4,864/m²), a €179,973 (25.2%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 13388e | Subject | €895,000 | €6,088 | — | 80 | 62 |
| Loulé (São Clemente) · cbc009 | Active | €895,000 | €4,864 | 20.1% | 74 | 64 |
| estrada municipal 520 | Active | €890,000 | €3,836 | 37.0% | 75 | 54 |
| Santa Bárbara de Nexe · 956c00 | Active | €999,500 | €5,316 | 12.7% | 75 | 67 |
| Loulé (São Clemente) · 9387a2 | Active | €895,000 | €4,864 | 20.1% | 76 | 64 |
| Median comp | €895,000 | €4,864 | 20.1% | 75 | 64 |
Short-term vacation rental The property is overpriced at €895,000, with a fair value of €715,027, indicating a 25.2% gap, making it a risky investment in the short-term rental market. The gross yield of 2.5% is below the typical returns expected in this segment, especially given the neighbourhood's 62/100 rating which suggests limited attractiveness to potential visitors. Buy-and-hold Investing in this property as a buy-and-hold asset may not be prudent, as its listing price exceeds fair value by over 25%, ultimately reducing long-term profitability. With a gross yield of only 2.5%, future appreciation might not compensate for the initial investment cost in this dominant tourist-driven market. Value-add renovation Although a value-add renovation strategy can potentially increase property value, the current asking price significantly exceeds fair market value, presenting limited upside. The condition score of 84/100 indicates that substantial investment may only yield marginal improvements relative to the high entry price. Not ideal for: This property is not suitable for student housing or luxury market segments due to its overpriced nature and lack of educational infrastructure. Furthermore, as a long-term rental, it poses challenges given its low yield and the seasonal volatility central to the local economy.
Tenant turnover risk High tenant turnover could be expected given the low tenant stability score of 58/100, leading to increased vacancy rates and unpredictable rental income.
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