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 417 m², built in 2015. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa features expansive floor-to-ceiling glazing that maximizes ocean views and natural light, along with a self-contained apartment ideal for guests or rental income.
The valuation. The asking price of €2,475,000 sits 10.2% above the fair value of €2,245,719, indicating a slightly inflated market perception. This valuation suggests the property is priced fairly but may require negotiation for a more justified investment. Buy-to-flip angle. A resale strategy focusing on short-term vacation rentals capitalizes on seasonal tourist demand, offering potential quick returns in the thriving Algarve market. Enhancements could further increase resale value and appeal to buyers. Buy-to-let angle. The estimated monthly rental income is €5,363, yielding 2.6%, appealing for long-term family renting or buy-and-hold strategies, especially given the low crime rates and increasing tourism in the region.
Fair value modelled at €2,245,719 from 6 comparable sales in the area. Asking €2,475,000 sits €229,281 (10.2%) above — overpriced versus fair value.
Asking €2,475,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,780,287 (€4,269/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €1,780,287, adjusted for condition and micro-location, gives a modelled fair value of €2,245,719 (€5,385/m²), a €229,281 (10.2%) gap versus the €2,475,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 2fcdd8 | Subject | €2,475,000 | €5,935 | — | 80 | 62 |
| Loulé (São Sebastião) · 875174 | Active | €790,000 | €4,938 | 16.8% | 80 | 74 |
| Loulé (São Sebastião) · 8ee7f0 | Active | €1,750,000 | €6,757 | 13.8% | — | 64 |
| Loulé (São Sebastião) · a79ec0 | Active | €495,000 | €3,667 | 38.2% | 75 | 64 |
| Loulé (São Sebastião) · 831355 | Active | €750,000 | €3,927 | 33.8% | 72 | 61 |
| Median comp | €770,000 | €4,433 | 25.3% | 75 | 64 |
Short-term vacation rental With a fair value of €2,245,719 and a current listing price of €2,475,000, the property presents a modest gap of 10.2%, suggesting it is fairly priced. The strong tourism demand in the southern Algarve region supports its viability as a short-term vacation rental, though the yield of 2.6% may limit returns compared to other investments. Buy-and-hold While the villa's condition is rated 85/100 and the local neighbourhood scores 62/100, the property’s valuation of €2,475,000 aligns closely with its fair value, indicating a balanced investment opportunity. Over the long term, the stable local economy supported by tourism could enhance property value appreciation, despite the current modest yield. Family rental Given its fair valuation status, the villa can serve as a solid family rental option, particularly in a region known for low crime and a family-friendly atmosphere. However, the gross yield of 2.6% may not attract investors looking for higher returns, positioning the property as a steady, albeit not lucrative, rental. Not ideal for: Student housing, Luxury market, Industrial development Due to the property being fairly priced, it is not optimal for student housing or luxury market pursuits, limiting potential tenant types. Additionally, the villa's characteristics do not align with the demands of industrial development, further cementing its status as a residential investment.
Economic Vulnerability: With an economic stability score of 60/100, there is a significant risk of fluctuations in the local market that could impact property value and rental income.
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