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 country_house of 109 m², built in 1950. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. Remarkable equestrian facilities include a drained riding arena with an irrigation system and five horse boxes, alongside two income-generating tiny houses equipped with solar panels.
The valuation. The asking price of €1,290,000 reflects a significant premium of €729,056 (130.0%) above the fair value of €560,944, categorizing this property as overpriced. Buy-to-flip angle. A resale strategy could involve targeting the seasonal tourist market, capitalizing on the Algarve's popularity to potentially secure short-term gains through renovation and appealing presentations. Buy-to-let angle. The estimated rental income is approximately €1,505/month, offering a gross yield of only 1.4%, suggesting that long-term rental viability may be limited in this overpriced context.
Fair value modelled at €560,944 from 6 comparable sales in the area. Asking €1,290,000 sits €729,056 (130.0%) above — overpriced versus fair value.
Asking €1,290,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €479,750 (€4,401/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 is above the parish average, lifting 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 €479,750, adjusted for condition and micro-location, gives a modelled fair value of €560,944 (€5,146/m²), a €729,056 (130.0%) gap versus the €1,290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · 07fcc8 | Subject | €1,290,000 | €11,835 | — | 82 | 64 |
| Loulé (São Clemente) · 4d4489 | Active | €1,750,000 | €6,757 | 42.9% | 78 | 64 |
| Santa Bárbara de Nexe · 4b99cc | Active | €995,000 | €5,293 | 55.3% | 75 | 69 |
| rua de Martim Farto | Active | €630,000 | €5,000 | 57.8% | 76 | 51 |
| estrada municipal 520 | Active | €750,000 | €2,650 | 77.6% | 65 | 64 |
| Median comp | €872,500 | €5,147 | 56.5% | 76 | 64 |
Short-term vacation rental The property is overpriced at €1,290,000, significantly exceeding its fair value of €560,944, suggesting that its current listing price is not justified for a short-term rental strategy. With a gross yield of only 1.4%, the potential returns do not align with typical expectations for vacation rentals in a tourist-driven market. Buy-and-hold Investing in this property for a buy-and-hold strategy is not advisable, as it is priced 130.0% above fair value, indicating limited potential for long-term appreciation. Furthermore, the low yield of 1.4% and moderate condition rating of 80/100 do not support a sustainable investment return over time. Value-add renovation The significant gap between the listing price and fair value suggests that a value-add renovation strategy would not be effective, as the property is currently overpriced at €1,290,000. Investing additional capital into renovations may not yield enough value to justify the combined costs given the current market dynamics and expected returns. Not ideal for This property is not suitable for the student housing market because of its pricing and location, which does not cater to long-term tenants. Additionally, its listing price places it outside the luxury market appeal, limiting potential buyers interested in that sector.
Tenant turnover risk The combined score of 115/200 for economic and tenant stability indicates a potential for higher turnover rates and inconsistent rental income due to relatively low scores in both areas.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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