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.
0-bedroom, 0-bathroom house of 198 m². Located Pechão parish, Olhão municipality, Faro district. Noteworthy Features: The property includes 1,294 m² of land, allowing for expansion or new construction, and is located just minutes from Olhão, offering easy access to essential services and the airport.
The valuation. The asking price of €220,000 is significantly above the fair value of €183,085, putting it at €36,915 (16.8%) overpriced in the current market. This discrepancy raises concerns about potential market resistance.
Fair value modelled at €183,085 from the area baseline, adjusted for condition and location. Asking €220,000 sits €36,915 (16.8%) above — overpriced versus fair value.
Asking €220,000 versus the Pechão, Olhão, Faro area baseline of €529,848 (€2,676/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 16/100 (Condition 10 · Materials 12 · Room dimensions 25). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 50 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Pechão, Olhão, Faro
Area baseline €529,848 + condition -€184,078 + location +€27,197 = modelled fair value of €183,085 (€925/m²), a €36,915 (16.8%) gap versus the €220,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · 937439 | Subject | €220,000 | €1,111 | — | — | 70 |
| rua do Emigrante, 2 | Active | €350,000 | €1,080 | 2.8% | — | 68 |
| Olhão · 82c6a1 | Active | €700,000 | €1,961 | 76.5% | — | 65 |
| rua Belmonte de Cima, 307 | Active | €400,000 | €1,818 | 63.6% | — | 62 |
| rua Manuel Tomé Viegas Vaz | Active | €360,000 | €2,250 | 102.5% | — | 66 |
| Median comp | €380,000 | €1,890 | 70.1% | — | 66 |
Short-term vacation rental Given the property is overpriced, the high yield of 11.7% is diminished by the significant gap of 16.8% from fair value, making it a less appealing option for vacation rentals. The condition of the property, rated at 16/100, indicates that immediate renovations might be needed, further complicating its viability in the competitive short-term rental market. Long-term rental The 0-bed house in Pechão, priced at €220,000, presents a significant gap compared to its fair value, indicating that this investment is overpriced. While the neighborhood has a solid 70/100 rating, the property's low condition score suggests high maintenance costs which may erode long-term rental profitability. Buy-and-hold Investing in this property for a buy-and-hold strategy is not advisable, given its 16.8% gap versus fair value and overall overpriced status. While the neighborhood has good amenities, the property’s poor condition and high purchase price could restrict both capital appreciation and rental cash flow over time.
Economic downturn risk The economic stability score of 50/100 indicates significant vulnerability to economic downturns, potentially affecting tenant retention and rental income.
