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.
2-bedroom, 1-bathroom house of 76 m², built in 1937, energy rating F. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Noteworthy Features: This property includes two expansive plots totaling 2700m², offering substantial outdoor space for gardening or potential development, complementing its traditional charm. Additional Notes: Fireplace enhances the cozy atmosphere.
The valuation. The asking price at €225,000 sits below the fair value of €266,758, indicating the property is subvalued by €41,758 (15.7%). Buy-to-flip angle. The strategy for resale involves capitalizing on the underpriced nature, aiming for a swift turnaround through minor renovations to increase market appeal. Buy-to-let angle. With an estimated gross yield of 6.9%, the property could generate around €1,294 per month, making it a viable long-term rental investment strategy in the growing Algarve region.
Fair value modelled at €266,758 from 6 comparable sales in the area. Asking €225,000 sits €41,758 (15.7%) below — the upside to fair value.
Asking €225,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €245,697 (€3,233/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 61/100 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 €245,697, adjusted for condition and micro-location, gives a modelled fair value of €266,758 (€3,510/m²), a €41,758 (15.7%) gap versus the €225,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · e3ab5e | Subject | €225,000 | €2,961 | — | 54 | 62 |
| estrada municipal 520 | Active | €675,000 | €3,534 | 19.4% | 70 | 62 |
| Loulé (São Clemente) · dbd4b8 | Active | €875,000 | €4,605 | 55.6% | — | 62 |
| estrada municipal 520 | Active | €675,000 | €3,534 | 19.4% | 60 | 62 |
| Santa Bárbara de Nexe · 53cdcc | Active | €350,000 | €2,448 | 17.3% | 55 | 66 |
| Median comp | €675,000 | €3,534 | 19.4% | 60 | 62 |
Short-term vacation rental This property presents an appealing opportunity for short-term vacation rental given its gross yield of 6.9%, suggesting strong income potential in a desirable area near tourist attractions. The fair value of €266,758 indicates that the listing price is underpriced at €225,000, offering investors an attractive entry point. Long-term rental The property’s location in rural Algarve provides a unique long-term rental opportunity, particularly as it falls below fair market value at €225,000. With a tenant-friendly yield of 6.9%, investors can expect a consistent rental income while benefiting from the property being underpriced relative to its fair market value. Family rental Offering two bedrooms and adequate living space, this home is suitable for family rental, especially given its underpriced listing at €225,000 compared to the fair value of €266,758. The good yield of 6.9% reinforces its potential to attract families looking for reasonably priced housing in a tranquil setting near tourist spots.
Economic Vulnerability The economic stability score of 55 indicates a considerable risk of economic downturns affecting the property's value and operational revenue.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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