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, 2-bathroom house of 200 m², energy rating E. Located Alte parish, Loulé municipality, Faro district. This property boasts a spacious private yard, complete with a barbecue area and wood oven, ideal for outdoor entertainment and traditional cooking.
The asking price of €390,000 is significantly above our assessed fair value of €316,000, indicating a €74,000 downside in relation to the asking price, reflecting low confidence in this valuation. Rental income. This property can generate a gross yield of 8.4%, placing it in the top quarter of the national rental range. Renovation upside. The current condition is rated 55/100, offering an entry margin for cosmetic renovations, estimated at €630/m², which may enhance property value further.
The asking price is above the fair value. Fair value is calculated by combining 60% of the Transaction model, which uses real sales data from Loulé, and 40% of the Adjusted asking-price model, reflecting current listings. Conservative adjustments were made for estimated works, resulting in a fair value of €316,000, which is significantly below the asking price of €390,000. The gap represents a 19.0% downside versus the asking price, indicating the property is overpriced. The confidence level in this valuation is low.
Gross yield 8.4% (before costs)
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
This 2-bed house in Alte, Loulé, presents a compelling investment case primarily due to the strong rental income potential, boasting an estimated gross yield of 8.4%, well above the national average. Although the asking price of €390,000 exceeds the fair value by 19.0%, which reflects the prevailing pricing trends in the municipality, the property offers room for negotiation. With a condition rating of 55/100 and reasonable renovation costs, there is potential for value enhancement through cosmetic upgrades that could attract higher rental rates. The neighbourhood, driven by seasonal tourism demand, further supports a robust rental market, making this investment worthy of consideration despite the current valuation.
Indicative, before costs, vacancy and management. Not investment advice.
Economic and tenant stability risk: With an economic stability score of 55/100 and a tenant stability score of 70/100, there is a risk that the property may face fluctuating rental demand and income stability due to the mixed stability of the local economy and tenant base. Fair value certainty risk: The valuation indicates a fair value of €316,000 with low confidence due to a lack of local transaction data, meaning that the asking price may not accurately reflect the property's true market value.
Grade BFindings: 0
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Models 3.4.3 (Data quality v3 · Valuation v4.2 · Strategy v3.1)
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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