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, 2-bathroom house of 333 m², built in 1999. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. The property features an independent borehole on the front land, ensuring consistent water supply for potential landscaping or agricultural uses.
The valuation. The asking price of €365,000 is significantly below the fair value of €784,491, indicating that the property is subvalued by €419,491, or 53.5%. This presents a lucrative opportunity for investment.
Fair value modelled at €784,491 from 6 comparable sales in the area. Asking €365,000 sits €419,491 (53.5%) below — the upside to fair value.
Asking €365,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €778,466 (€2,338/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 48/100 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 €778,466, adjusted for condition and micro-location, gives a modelled fair value of €784,491 (€2,356/m²), a €419,491 (53.5%) gap versus the €365,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 51b507 | Subject | €365,000 | €1,096 | — | 39 | 55 |
| Loulé (São Sebastião) · 3a71a8 | Active | €470,000 | €1,577 | 43.9% | 34 | 70 |
| Loulé (São Sebastião) · dee644 | Active | €187,500 | €884 | 19.3% | 30 | 60 |
| Loulé (São Sebastião) · 6c7797 | Active | €290,000 | €2,339 | 113.4% | 38 | 57 |
| Loulé (São Sebastião) · 3a7181 | Active | €900,000 | €3,147 | 187.1% | 70 | 70 |
| Median comp | €380,000 | €1,958 | 78.6% | 36 | 65 |
Short-term vacation rental With a gross yield of 18.4% and a significant gap of 53.5% from fair value, this property presents an appealing opportunity for short-term vacation rentals in the tourism-driven Algarve region. Its location in Loulé, while rural, allows for attractive rental potential during peak seasons, capitalizing on the area's tourism influence. Long-term rental Given the property’s fair value of €784,491, the current listing price of €365,000 indicates a substantial investment opportunity for long-term rental strategies. The balanced tenant quality and decent neighborhood rating suggest a stable rental income potential, making it attractive for long-term commitments. Buy-and-hold This property’s underpriced nature, with a significant equity upside based on valuation, makes it a strong candidate for a buy-and-hold investment strategy. The long-term growth potential in the Algarve’s rural area, combined with its gross yield, ensures that this asset could appreciate significantly over time. Not ideal for: Student housing, Luxury market, Industrial development The characteristics of the property and its rural location do not align with the requirements for student housing, luxury developments, or industrial use, possibly limiting its potential in those sectors.
High Vacancy Risk The property faces a heightened risk of vacancy given the low economic stability score of 45/100 and a tenant stability score of 55/100, indicating potential instability in rental income.
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