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.
5-bedroom, 4-bathroom villa of 250 m², energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This property features two independent annexes, each offering unique character, perfect for guest accommodation or creative studios, enhancing both privacy and versatility.
The valuation. The asking price is €860,000, which sits €248,356 (22.4%) below the fair value of €1,108,356. This indicates the property is underpriced, providing an excellent opportunity for investors.
Fair value modelled at €1,108,356 from 6 comparable sales in the area. Asking €860,000 sits €248,356 (22.4%) below — the upside to fair value.
Asking €860,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €976,677 (€3,907/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 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 €976,677, adjusted for condition and micro-location, gives a modelled fair value of €1,108,356 (€4,433/m²), a €248,356 (22.4%) gap versus the €860,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 51b71e | Subject | €860,000 | €3,440 | — | 70 | 72 |
| rua de Poço Geraldo | Active | €2,150,000 | €4,216 | 22.5% | 75 | 66 |
| caminho do Moinho | Active | €1,200,000 | €4,651 | 35.2% | 62 | 74 |
| Loulé (São Sebastião) · efdd77 | Active | €2,200,000 | €4,022 | 16.9% | 80 | 66 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 171.6% | 78 | 63 |
| Median comp | €2,175,000 | €4,434 | 28.9% | 77 | 66 |
Short-term vacation rental The villa's robust gross yield of 4.5% and the 22.4% gap from fair value suggest it is an attractive option for short-term vacation rentals, especially in Loulé's thriving tourist market. With a fair value of €1,108,356, investors can capitalize on high demand without overpaying for the property. Buy-and-hold Holding this 5-bed villa aligns well with a buy-and-hold strategy due to the strong property value appreciation potential in a location known for its tourist presence. The current listing price is positioned attractively at €860,000, which is significantly below the calculated fair value, indicating promising long-term growth. Family rental As a family rental, the property benefits from a family-friendly neighborhood score of 72/100 and the stability offered by Portugal’s low crime rates. Its appealing price relative to the fair value allows investors to secure a family home that supports both quality living and investment appreciation.
Economic Concern The economic stability score of 65/100 indicates a medium risk of economic downturn affecting property values and rental income.
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