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.
1-bedroom, 1-bathroom country_house of 110 m², energy rating G. Located Loulé (São Clemente) parish, Loulé municipality, Faro district. The property includes an approved reconstruction project allowing for extensive renovations, enhancing its potential for modern living while retaining its traditional charm.
The valuation. The asking price of €290,000 is below the fair value of €334,783, indicating the property is subvalued by €44,783 (13.4%). This presents a favorable purchasing opportunity in the current market.
Fair value modelled at €334,783 from 5 comparable sales in the area. Asking €290,000 sits €44,783 (13.4%) below — the upside to fair value.
Asking €290,000 versus the Loulé (São Clemente), Loulé, Faro area baseline of €395,051 (€3,591/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 18/100 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 €395,051, adjusted for condition and micro-location, gives a modelled fair value of €334,783 (€3,043/m²), a €44,783 (13.4%) gap versus the €290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Loulé (São Clemente) · e5512d | Subject | €290,000 | €2,636 | — | 28 | 62 |
| Loulé (São Sebastião) · dc142d | Active | €650,000 | €3,023 | 14.7% | 20 | 69 |
| Loulé (São Sebastião) · 1e6507 | Active | €199,500 | €2,660 | 0.9% | 15 | 62 |
| rua Sebastião Cordeiro, 14 | Active | €380,000 | €4,222 | 60.2% | — | 64 |
| largo Doutor Bernardo Lopes | Active | €280,000 | €3,043 | 15.4% | 30 | 68 |
| Median comp | €330,000 | €3,033 | 15.0% | 20 | 66 |
Short-term vacation rental The property in Loulé presents a favorable opportunity for short-term vacation rentals due to its location in the tourist-centric Algarve region, where demand peaks during the tourist season. With a current listing price that is 13.4% below fair value and a gross yield of 4%, this investment can generate strong returns during peak vacation periods. Buy-and-hold Investing in this one-bedroom house as a buy-and-hold strategy is appealing, given its subvalorizada status relative to the fair market value, as well as potential appreciation in value due to the region's dependence on tourism. Though the property has a low condition score of 18/100, strategic renovations can enhance its appeal and marketability over time. Long-term rental Acquiring this property for long-term rental can yield stable income, supported by a 4% gross yield despite seasonal fluctuations typical of the Algarve market. Although the neighborhood score is moderate at 62/100, the potential for consistent rental occupancy remains promising due to ongoing demand for housing in tourist areas. Not ideal for Utilizing this property for student housing or entering the luxury market would not be recommended, as the location and property characteristics do not align with the needs of those demographics. The seasonal nature of tourism in the Algarve indicates that the current setup is better suited for transient renters seeking short-term stays.
Economic Volatility Risk The economic stability score of 55/100 suggests a heightened risk of economic fluctuations that could impact rental income and property value.
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