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, 5-bathroom villa of 349 m², built in 1937, energy rating D. Located Loulé (São Sebastião) parish, Loulé municipality, Faro district. This villa features a separate annex with a self-contained studio, perfect for guests or as a private retreat, enhancing the property's versatility and adding potential rental income.
The asking price of €1,750,000 is significantly above our assessed fair value of €901,000, indicating that this property is overpriced by €849,000, representing a 48.5% downside versus the asking price; confidence in this fair value is low. The estimated gross yield sits at 4%, providing context but not suggesting a strategy for investment. Rental yield. The asking price is significantly higher than the fair value, rendering this opportunity unsuitable for current investment strategies. Conclusion. The condition of the property is currently at a rating of 49 out of 100, reflecting standard contemporary finishes achieved within a traditional structure but at a builder-grade level. The neighbourhood rating of 78 indicates a mixed environment; however, the area's economic stability is substantially reliant on the seasonal tourism industry.
The property's fair value is determined using two models. The Transaction model relies on real transaction data, with 217 sales recorded in Loulé over the last year. The Adjusted asking-price model uses current listing prices, adjusted to reflect actual sales. Combining these models, we apply a conservative approach with adjustments for factors like estimated renovation costs, resulting in a fair value of €901,000. Given that the asking price is €1,750,000, we conclude that the asking price is above the fair value, indicating a significant gap with a confidence level described as low.
Gross yield 4% (before costs)
No specific strategy stands out for this property.
Negotiation room: Negotiation context: asking prices in this municipality run about 16% above what similar homes actually sell for, so there is usually room to negotiate
The asking price of €1,750,000 is significantly above the fair value of €901,000, indicating a 48.5% downside versus the asking price. This assessment reveals that the property, while situated in a desirable location near the Algarve and has a fair condition score, is likely overvalued given the current economic indicators and market performance. Investors should carefully consider the price relative to value and the associated risks before proceeding.
Indicative, before costs, vacancy and management. Not investment advice.
Economic and tenant stability risk The economic stability score of 75/100 and tenant stability score of 75/100 indicate a moderate risk of fluctuations in income and occupancy, which could impact the property's profitability. Fair value certainty risk The valuation of €901,000 comes with a low confidence level due to the absence of micro-location transaction data, and the difference between estimates exceeds acceptable tolerances, raising concerns about its reliability.
Grade AFindings: 0
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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