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, 5-bathroom villa of 231 m², built in 2003, energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa features a panoramic rooftop terrace perfect for soaking in breathtaking sunsets, alongside a heated saltwater pool for year-round enjoyment.
The valuation. The asking price of €1,500,000 is positioned favorably against the fair value of €1,695,132, representing a discount of €195,132 (11.5%). Verdict: underpriced. Buy-to-flip angle. With effective renovations, this property could be strategically flipped, capitalizing on its luxury finish to attract buyers in the desirable Loulé area. Buy-to-let angle. The estimated rental income of €2,500/month offers a gross yield of 2%, making it a suitable buy-and-hold investment within a predominantly tourist-driven market where demand fluctuates seasonally.
Fair value modelled at €1,695,132 from 6 comparable sales in the area. Asking €1,500,000 sits €195,132 (11.5%) below — the upside to fair value.
Asking €1,500,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,493,072 (€6,464/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 €1,493,072, adjusted for condition and micro-location, gives a modelled fair value of €1,695,132 (€7,338/m²), a €195,132 (11.5%) gap versus the €1,500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 2fcade | Subject | €1,500,000 | €6,494 | — | 80 | 75 |
| Loulé (São Sebastião) · efdd49 | Active | €2,495,000 | €8,785 | 35.3% | 82 | 75 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 43.9% | 78 | 63 |
| Loulé (São Sebastião) · 3df382 | Active | €2,950,000 | €8,676 | 33.6% | 95 | 79 |
| Loulé (São Sebastião) · 834096 | Active | €2,250,000 | €5,501 | 15.3% | 80 | 64 |
| Median comp | €2,420,000 | €8,731 | 34.4% | 81 | 70 |
Short-term vacation rental This villa is positioned favorably for short-term vacation rentals, capitalizing on the robust tourism demand in the area with an estimated yield of 2%. Priced at €1,500,000, it presents an opportunity, being 11.5% under its fair value of €1,695,132, making it an attractive asset for investors seeking rental income. Buy-and-hold The property, located in a tourist-centric area, offers a solid buy-and-hold strategy as it is subvalued relative to its fair market price, allowing for long-term appreciation. With a condition score of 84/100 and a good neighborhood rating of 75/100, it is likely to maintain desirability over time. Value-add renovation Investors can leverage the existing condition score of 84/100 to execute a value-add renovation strategy, enhancing property value while maximizing return. Being priced beneath its fair value suggests that renovations could yield significant returns in both rental income and market appeal. Not ideal for student housing, family rental, luxury market Given the area's focus on tourism, this villa is not suited for student housing or family rentals, which are limited in demand. Additionally, the luxury market appears oversaturated in the region, making this property less viable for high-end residential purposes.
Economic Volatility Risk The property has a relatively high economic stability score of 75/100, but the tenant stability score of 70/100 indicates potential fluctuations in occupancy, which could affect rental income.
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