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 penthouse of 180 m² on the 4th floor, built in 2012, energy rating B. Located on avenida da Fonte Santa, Quarteira parish, Loulé municipality, Faro district. Noteworthy Features: The penthouse's expansive wrap-around balcony offers breathtaking views of the sea and Algarve hills, enhancing its appeal as a luxurious outdoor living space. Condition Notes: Finished with modern aesthetics, the apartment reflects quality craftsmanship and attention to detail throughout its well-designed layout.
The valuation. The asking price of €695,000 is €92,888 (11.8%) below the fair value of €787,888, indicating that this penthouse is underpriced in the current market. This presents a favorable opportunity for potential investors.
Fair value modelled at €787,888 from 6 comparable sales in the area. Asking €695,000 sits €92,888 (11.8%) below — the upside to fair value.
Asking €695,000 versus the avenida da Fonte Santa area baseline of €740,773 (€4,115/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 below the wider parish average — a hyper-local discount distinct from the parish baseline.
Base gap of €740,773, adjusted for condition and micro-location, gives a modelled fair value of €787,888 (€4,377/m²), a €92,888 (11.8%) gap versus the €695,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida da Fonte Santa | Subject | €695,000 | €3,861 | — | 80 | 73 |
| rua do Morgadinho | Active | €650,000 | €4,392 | 13.7% | 80 | 72 |
| Quarteira · b7c089 | Active | €650,000 | €4,362 | 13.0% | 78 | 71 |
| Quarteira · 3a710c | Active | €495,000 | €3,486 | 9.7% | 70 | 70 |
| Quarteira · f14e18 | Active | €650,000 | €4,362 | 13.0% | 80 | 73 |
| Median comp | €650,000 | €4,362 | 13.0% | 79 | 72 |
Short-term vacation rental The property, listed at €695,000, presents an attractive opportunity in the vacation rental market, especially given its proximity to Algarve's beaches and tourist attractions. With a fair value of €787,888, it is currently subvalued by 11.8%, enhancing its potential for strong rental income. Buy-and-hold Investing in this penthouse for long-term appreciation is compelling; the 0% yield indicates that immediate cash flow may not be realized, but the potential for value growth over time is significant given its fair valuation. The neighborhood's rating of 73/100 suggests a solid environment for property appreciation, particularly as tourism continues to drive local demand. Family rental As a family rental, this penthouse holds promise due to its spacious layout and quality condition rating of 84/100, making it appealing for long-term tenants. The 11.8% gap from fair value indicates that while the property is not yielding rental income at the moment, it offers a favorable entry point in a neighborhood that supports family living.
Economic Downturn Risk The economic stability score of 65/100 suggests a potential risk of downturns, which may impact rental income and property values negatively.
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