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, 7-bathroom villa of 450 m², built in 2005, energy rating B. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa boasts unique architectural elements such as vaulted brick ceilings and azulejo tile murals, alongside extensive marble and custom oak cabinetry throughout its meticulously renovated living spaces.
The valuation. The asking price of €2,950,000 is significantly below the fair value of €3,928,878, presenting a discount of €978,878 (24.9%). This indicates the property is underpriced.
Fair value modelled at €3,928,878 from 6 comparable sales in the area. Asking €2,950,000 sits €978,878 (24.9%) below — the upside to fair value.
Asking €2,950,000 versus the Loulé (São Sebastião), Loulé, Faro area baseline of €3,426,011 (€7,613/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 88/100 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 €3,426,011, adjusted for condition and micro-location, gives a modelled fair value of €3,928,878 (€8,731/m²), a €978,878 (24.9%) gap versus the €2,950,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Sebastião) · e54dde | Subject | €2,950,000 | €6,556 | — | 96 | 65 |
| Loulé (São Sebastião) · efdd49 | Active | €2,495,000 | €8,785 | 34.0% | 82 | 75 |
| Loulé (São Sebastião) · 4a7dfc | Active | €3,300,000 | €27,500 | 319.5% | 85 | 70 |
| rua de Cerro de Alfeição, 15 | Active | €2,345,000 | €9,343 | 42.5% | 78 | 63 |
| Loulé (São Sebastião) · efdc97 | Active | €1,800,000 | €6,000 | 8.5% | 85 | 71 |
| Median comp | €2,420,000 | €9,064 | 38.3% | 84 | 71 |
Short-term vacation rental The property's competitive pricing compared to its fair value of €3,928,878 positions it favorably within the short-term rental market in Algarve, attracting high tourist demand. With a gross yield of 2.8% and excellent condition rating of 88/100, it presents a compelling opportunity for maximizing rental income. Buy-and-hold This villa’s location in a popular tourist area alongside a fair value indication of €3,928,878 suggests strong long-term appreciation potential for investors looking for stability. The 2.8% gross yield coupled with a well-maintained condition makes it an appealing addition to a buy-and-hold strategy. Value-add renovation With a current gap of 24.9% between the listing price and its fair value, there is significant potential for value-add renovations, enhancing the property’s attractiveness and rental yield. The villa's good condition score of 88/100 provides a solid foundation for strategic improvements to further capitalize on the growing tourist market in the region.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk of economic downturns affecting property values and rental income stability, which could lead to decreased investor returns. Tenant Fluctuation Risk With a tenant stability score of 65/100, there is a substantial chance of tenant turnover, potentially increasing vacancy rates and impacting cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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