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, 0-bathroom villa of 200 m², built in 2002, energy rating E. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This villa features multiple terraces ideal for outdoor entertaining, and its independent annex provides flexibility for use as a home office or guest accommodation.
The valuation. The asking price of €1,850,000 is significantly above the fair value of €909,524, resulting in an overpriced status of €940,476 (103.4%). This suggests a lack of financial viability for potential investors. Buy-to-flip angle. A buy-to-flip strategy would require significant renovations to enhance appeal, despite the existing condition rating of 0/100, aiming for a quick resale at a premium amidst the Algarve market. Buy-to-let angle. Considering the estimated gross yield of 1.5% (~€2,312/month), the rental income strategy hinges on leveraging the property for short-term vacation rentals in a tourist-driven economy, despite the overall neighborhood rating of 63/100.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · a467a4 | Subject | €1,850,000 | €9,250 | — | — | 63 |
| estrada municipal 520 | Active | €675,000 | €3,534 | 61.8% | 60 | 62 |
| estrada municipal 520 | Active | €750,000 | €2,650 | 71.3% | 65 | 64 |
| Loulé (São Clemente) · efdc2f | Active | €430,000 | €4,095 | 55.7% | 65 | 67 |
| Loulé (São Clemente) · 6fb93b | Active | €1,850,000 | €7,143 | 22.8% | — | 66 |
| Median comp | €712,500 | €3,815 | 58.8% | 65 | 65 |
Short-term vacation rental This property, with a gross yield of only 1.5%, shows that it is priced significantly above its fair value of €909,524, indicating it is not suitable for the short-term vacation rental strategy. The high listing price hampers potential profitability, especially given the typical Algarve characteristics which already attract substantial tourism. Buy-and-hold At a listing price of €1,850,000, this villa is overvalued compared to its fair value, making it a poor candidate for a buy-and-hold investment strategy. The limited yield and high cost are detrimental to long-term appreciation in a neighborhood with a tenant quality rating of only 63/100. Family rental With the property priced at €1,850,000, it is overpriced when considering its fair value of €909,524, which diminishes its appeal for family rentals. The condition rating of 0/100 further complicates the potential for generating sustainable, long-term rental income in the current market.
Economic and Tenant Instability The property faces a risk due to both economic and tenant stability scores being at 60/100, indicating potential challenges in sustaining rental income and tenant retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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