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.
5-bedroom, 6-bathroom villa of 784 m², built in 2011, energy rating C. Located Almancil parish, Loulé municipality, Faro district. This villa features an extraordinary games area on the first floor, fostering a playful and inviting ambiance for gatherings, while the extensive grounds ensure unrivaled privacy.
The valuation. The asking price of €4,400,000 sits €933,770 (17.5%) below the fair value of €5,333,770, indicating the property is underpriced based on current market assessments. Buy-to-flip angle. The resale strategy involves capitalizing on the luxury appeal and prime Algarve location, targeting short-term buyers willing to pay a premium for high-quality finishes. Buy-to-let angle. The property could generate substantial rental income, with an estimated gross yield of 6.2%, equating to approximately €22,733/month, making it suitable for both short-term and long-term rental strategies.
Fair value modelled at €5,333,770 from 6 comparable sales in the area. Asking €4,400,000 sits €933,770 (17.5%) below — the upside to fair value.
Asking €4,400,000 versus the Almancil, Loulé, Faro area baseline of €4,063,413 (€5,183/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 89/100 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 €4,063,413, adjusted for condition and micro-location, gives a modelled fair value of €5,333,770 (€6,803/m²), a €933,770 (17.5%) gap versus the €4,400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Almancil · 33bbe6 | Subject | €4,400,000 | €5,612 | — | 85 | 75 |
| Almancil · 96c146 | Active | €2,900,000 | €4,662 | 16.9% | 76 | 73 |
| Almancil · 4a4496 | Active | €2,490,000 | €6,803 | 21.2% | 80 | 73 |
| Almancil · 828e9c | Active | €2,490,000 | €6,803 | 21.2% | 82 | 73 |
| Almancil · dbd47e | Active | €1,650,000 | €3,986 | 29.0% | 80 | 66 |
| Median comp | €2,490,000 | €5,733 | 2.1% | 80 | 73 |
Short-term vacation rental The property’s 6.2% gross yield aligns well with the high tourist activity in the Algarve region, indicating strong demand for short-term rentals. With a fair value significantly higher than the listing price, this villa presents an attractive investment opportunity for holiday let accommodations. Long-term rental Given the robust tourism industry's influence on the local economy, this villa's favorable market conditions make it suitable for long-term rental investment. The attractive yield and good condition rating enhance its potential as a reliable source of rental income over time. Buy-and-hold Investing in this property for a buy-and-hold strategy is appealing due to its current undervaluation compared to fair market value. The property’s strong neighborhood performance and high condition score position it as a solid asset for long-term appreciation in a thriving area. Not ideal for student housing The property is not suitable for student housing, as the demographic and tenant quality in the area does not align with the needs of long-term student accommodation. The premium nature of the villa suggests a market preference for affluent renters rather than students. Not ideal for luxury market This villa does not cater to the luxury market segment, as its pricing and amenities do not meet the expectations of high-end buyers. The competitive landscape in the luxury sector may dilute its appeal despite attractive features. Not ideal for industrial development The property's location and neighborhood characteristics are not conducive to industrial development, being situated in a region primarily focused on residential and tourism-related activities. The existing demand dynamics favor residential uses over industrial investments.
Tenant turnover risk The Economic stability and Tenant stability scores of 70/100 indicate a moderate risk of tenant turnover, which could impact rental income stability negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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