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.
2-bedroom, 0-bathroom country_house of 251 m², energy rating F. Located Alte parish, Loulé municipality, Faro district. Noteworthy Features: This property includes a pre-1951 construction license, enhancing its potential for rehabilitation and valuation, alongside expansive land well-suited for various outdoor projects.
The valuation. The asking price of €165,000 sits €133,190 below fair value, indicating it is underpriced at 44.7%. This presents a compelling opportunity for investors looking to maximize their returns in the Algarve region. Buy-to-flip angle. With a fair value of €298,190, a buy-to-flip strategy could involve renovation to enhance appeal and resale at a higher price point, capitalizing on market demand. Buy-to-let angle. Given its location in a tourist-friendly area of Algarve, the property can be utilized for short-term vacation rentals or long-term tenants, allowing for consistent income once rehabilitation is completed.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alte · 0ace10 | Subject | €165,000 | €657 | — | — | 62 |
| rua do Rossio | Active | €279,000 | €1,431 | 117.7% | 46 | 68 |
| Alte · ba3f1c | Active | €132,500 | €1,699 | 158.4% | 20 | 62 |
| estrada M1089 | Active | €149,000 | €1,330 | 102.4% | 35 | 62 |
| Alte · 25f4b1 | Active | €229,000 | €1,046 | 59.1% | 48 | 63 |
| Median comp | €189,000 | €1,381 | 110.0% | 41 | 63 |
Short-term vacation rental With a fair value significantly higher than the listing price, this property presents an attractive opportunity for short-term vacation rentals in a region popular with tourists. However, the gross yield of 0% indicates that immediate revenue generation may be limited, requiring a focus on future appreciation. Long-term rental The property is appealing for long-term rental due to its competitive price relative to its fair market value, offering potential for steady cash flow as the region continues to attract residents and tourists alike. Despite the zero yield, the undervaluation suggests strong potential for appreciation over time, making it a strategic choice for landlords anticipating rising demand. Buy-and-hold Investing in this property as a buy-and-hold strategy stands out given the significant gap to fair value, capturing long-term capital appreciation in the thriving Algarve rural zone. Although the condition is a concern, the lower purchase price allows for a longer investment horizon to enhance value without immediate pressures from rental income.
Economic Weakness Risk The economic stability score of 60/100 indicates potential vulnerabilities in the local economy which could negatively impact property value and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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