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, 1-bathroom townhouse of 110 m², energy rating F. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: This property includes significant renovation potential with a large urban plot and the possibility for expansion or new development under municipal regulations, enhancing its investment appeal.
The valuation. The asking price of €265,000 is significantly below its fair value of €366,667, representing a variance of €101,667 (27.7%). This property is underpriced and presents a strong opportunity for savvy investors.
Fair value modelled at €366,667 from 6 comparable sales in the area. Asking €265,000 sits €101,667 (27.7%) below — the upside to fair value.
Asking €265,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €347,624 (€3,160/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 50/100 is below the parish average, reducing 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 €347,624, adjusted for condition and micro-location, gives a modelled fair value of €366,667 (€3,333/m²), a €101,667 (27.7%) gap versus the €265,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 096e1e | Subject | €265,000 | €2,409 | — | 55 | 71 |
| Loulé (São Clemente) · 956801 | Active | €280,000 | €1,333 | 44.7% | — | 59 |
| rua do Pôr do Sol | Active | €690,000 | €5,656 | 134.8% | 62 | 68 |
| Loulé (São Sebastião) · a79ec0 | Active | €495,000 | €3,667 | 52.2% | 75 | 64 |
| Loulé (São Sebastião) · 6c7797 | Active | €290,000 | €2,339 | 2.9% | 38 | 57 |
| Median comp | €392,500 | €3,003 | 24.7% | 62 | 62 |
Short-term vacation rental The property's strong gross yield of 8.5% suggests robust potential for short-term vacation rental income, particularly given the high tourist traffic in Algarve. Additionally, with a fair value gap of 27.7%, this townhouse represents a lucrative opportunity for investors seeking to capitalize on seasonal occupancy trends. Buy-and-hold With a fair value of €366,667 compared to the listing price of €265,000, this townhouse is set up well for long-term appreciation in a desirable area. The neighborhood's respectable rating of 71/100 further supports the potential for value growth, making this an attractive buy-and-hold investment. Luxury market Although the property is positioned within a popular tourist region, its current condition rating of 50/100 indicates room for improvement, which may appeal to buyers looking to enter the luxury market. Given the significant gap from fair value, strategic renovations could elevate this townhouse into a more upscale offering, capitalizing on the affluent market. Student housing Given that the education options in the region are typical, rather than exceptional, this townhouse does not present an optimal choice for student housing investment. The potential tenant quality may not match the consistent demand required for a successful student rental strategy. Industrial investment The residential nature of this property makes it ill-suited for industrial investments, which typically require zoning for commercial use. As such, pursuing an industrial strategy here would not align with the current property profile or neighborhood characteristics.
Economic Volatility The economic stability score of 65/100 indicates potential vulnerability to economic downturns, impacting rental income and tenant retention.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
