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, 2-bathroom villa of 138 m², built in 1900, energy rating C. Located on avenida Cerro da Vila, 2A, Quarteira parish, Loulé municipality, Faro district. This property features a private terrace perfect for outdoor entertaining, complemented by a fireplace in the living room that adds warmth and ambiance.
The valuation. The asking price of €950,000 sits significantly below the fair value of €1,393,269, reflecting a potential undervaluation of €443,269 (31.8%). This makes the property an attractive investment opportunity.
Fair value modelled at €1,393,269 from 3 comparable sales in the area. Asking €950,000 sits €443,269 (31.8%) below — the upside to fair value.
Asking €950,000 versus the avenida Cerro da Vila, 2A area baseline of €1,383,545 (€10,026/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 is above the parish average, lifting fair value versus a typical-condition unit.
Recent nearby listings price below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €1,383,545, adjusted for condition and micro-location, gives a modelled fair value of €1,393,269 (€10,096/m²), a €443,269 (31.8%) gap versus the €950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida Cerro da Vila, 2A | Subject | €950,000 | €6,884 | — | 75 | 73 |
| Quarteira · 3a70f5 | Active | €1,599,000 | €8,372 | 21.6% | 74 | 66 |
| rua de Volta da Figueira | Active | €1,050,000 | €10,294 | 49.5% | 78 | 68 |
| Quarteira · 3a712d | Active | €1,050,000 | €10,096 | 46.7% | 80 | 75 |
| Median comp | €1,050,000 | €10,096 | 46.7% | 78 | 68 |
Short-term vacation rental This 3-bed villa in Quarteira offers a significant opportunity for short-term vacation rentals, as it is listed at €950,000 despite a fair value of €1,393,269, representing a 31.8% gap. With the Algarve’s strong tourism draw, a gross yield of 2.8% could increase with effective management and seasonal demand. Long-term rental Investing in this property for long-term rental looks favorable, given its competitive listing price of €950,000 relative to the fair value of €1,393,269, indicating it is 31.8% below market potential. Despite the property’s lower yield of 2.8%, its location in a desirable tourist area provides consistent rental demand even amid seasonal fluctuations. Buy-and-hold Acquiring this villa for a buy-and-hold strategy is promising, as the current asking price of €950,000 is significantly lower than the fair value of €1,393,269, showcasing a potential appreciation of 31.8% over time. The neighborhood's tourism-centric economy further supports the long-term value growth of the investment, even considering the villa's condition rating of 78/100. Not ideal for student housing This property would not be an ideal candidate for student housing due to its higher price point, with a listing of €950,000 compared to a fair value of €1,393,269. The location does not cater to the needs and budget constraints typical of student renters within the area. Not ideal for luxury market Given the current valuation of €950,000 versus a fair value of €1,393,269, this villa should not be positioned within the luxury market segment. Its general condition rating of 78/100 indicates that it may not meet the high standards expected by luxury buyers in the region.
Economic Vulnerability With an economic stability score of 65/100, the property may face challenges during economic downturns that could impact tenant occupancy and rental income.
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