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.
4-bedroom, 4-bathroom villa of 600 m², energy rating A. Located on avenida do Mar, Almancil parish, Loulé municipality, Faro district. This villa features an expansive outdoor space with a private pool and landscaped gardens, ideal for entertaining or relaxing, enhancing its rental appeal and lifestyle options.
The valuation. The asking price of €8,500,000 significantly exceeds the fair value of €4,693,355, reflecting a disparity of €3,806,645 (81.1%). This property is thus considered overpriced. Buy-to-flip angle. With potential renovations not yielding satisfactory returns, a resale or wholesale strategy may be unprofitable given the current asking price. A short-term gain through flipping seems unlikely. Buy-to-let angle. The estimated gross yield of 1.1% (~€7,792/month) indicates a low return on investment, making the buy-and-hold rental strategy less attractive in a competitive vacation rental market.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida do Mar | Subject | €8,500,000 | €14,167 | — | — | 61 |
| rua do Figueiral | Active | €1,890,000 | €8,217 | 42.0% | — | 71 |
| urbanização Vale do Lobo | Active | €1,895,000 | €7,580 | 46.5% | — | 71 |
| Almancil · 9c7aa4 | Active | €10,200,000 | €19,282 | 36.1% | — | 67 |
| rua da Fabrica S / N | Active | €2,500,000 | €6,250 | 55.9% | — | 68 |
| Median comp | €2,197,500 | €7,899 | 44.2% | — | 70 |
Short-term vacation rental The €8,500,000 price tag for this villa is excessively high compared to its fair value of €4,693,355, representing an 81.1% premium. With a low yield of 1.1% gross and a condition score of 0/100, this property is unlikely to attract the volume of short-term renters necessary to justify the investment. Buy-and-hold Investing in this property as a long-term hold does not make financial sense given its significant markup over the fair value. The combination of a low yield and a neighbourhood score of 61/100 indicates that capital appreciation will likely be insufficient to offset the initial overvaluation. Family rental The steep price of this villa presents a substantial barrier for families seeking rental opportunities, as it exceeds fair market rates by 81.1%. Furthermore, with a gross yield of only 1.1% and an unfavorable condition score, the potential for stable family rental income is limited, making it an unsuitable investment in this strategy.
[Investment volatility risk] With an economic stability score of 60 and a tenant stability score of 55, the property may experience fluctuations in rental income and occupancy rates, indicating potential challenges in maintaining consistent 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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