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, 6-bathroom house of 419 m², built in 2008, energy rating E. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. Noteworthy Features: The property includes a spacious, elegantly designed office suitable for remote work and a large game room in the basement for entertainment and leisure options.
The valuation. The asking price of €990,000 is significantly below the fair value of €1,749,427, representing a discount of €759,427 (43.4%). Verdict: underpriced. Buy-to-flip angle. The strategy focuses on modern renovations to enhance appeal, targeting a resale at a price closer to fair value, capitalizing on the location's desirability. Buy-to-let angle. Aiming for a gross yield of 5.4%, the property can be utilized for short-term vacation rentals, generating an estimated income of €4,455 per month.
Fair value modelled at €1,749,427 from 6 comparable sales in the area. Asking €990,000 sits €759,427 (43.4%) below — the upside to fair value.
Asking €990,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €1,390,310 (€3,318/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €1,390,310, adjusted for condition and micro-location, gives a modelled fair value of €1,749,427 (€4,175/m²), a €759,427 (43.4%) gap versus the €990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · 9c7be8 | Subject | €990,000 | €2,363 | — | 78 | 64 |
| estrada de Vale Covo | Active | €2,300,000 | €4,600 | 94.7% | 80 | 73 |
| caminho do Moinho | Active | €1,200,000 | €4,651 | 96.9% | 62 | 74 |
| Loulé (São Sebastião) · f3638b | Active | €1,730,000 | €4,436 | 87.7% | 75 | 71 |
| caminho de Vale Covo | Active | €1,195,000 | €3,096 | 31.0% | 85 | 63 |
| Median comp | €1,465,000 | €4,518 | 91.2% | 78 | 72 |
Short-term vacation rental The 5-bed house in Loulé presents an appealing option for short-term vacation rentals, supported by its proximity to the Algarve coastline and strong tourism demand. With a fair value of €1,749,427 and a current listing price of €990,000, the property is effectively underpriced, making it an attractive investment for short-term rental income. Buy-and-hold Given the property’s fair value of €1,749,427 compared to the listing price of €990,000, it is positioned as an excellent buy-and-hold investment that can appreciate significantly over time. The potential for a gross yield of 5.4% further enhances its appeal, particularly as the location continues to attract tourism. Long-term rental This property boasts a competitive position in the long-term rental market, partly due to its pricing being well below its fair value of €1,749,427. With a decent gross yield of 5.4%, it represents a promising opportunity for stable, long-term rental income for investors looking for secure returns in a thriving tourist area.
Economic Vulnerability The economic stability score of 60 indicates a moderate risk of economic downturn, which could adversely affect rental income and property value.**
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