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.
3-bedroom, 4-bathroom house of 159 m², energy rating B. Located on urbanização Cerro Azul, Quelfes parish, Olhão municipality, Faro district. This property features an impressive 3,120 m² plot with extensive landscaped gardens and a tranquil lake, enhancing its appeal as a private sanctuary in the Algarve.
The valuation. The asking price of €1,270,000 significantly exceeds the fair value of €321,931, resulting in a substantial overvaluation of €948,069 (74.7%). This property is overpriced based on current market fundamentals.
Fair value modelled at €297,830 from the area baseline, adjusted for condition and location. Asking €1,270,000 sits €972,170 (76.5%) above — overpriced versus fair value.
Asking €1,270,000 versus the urbanização Cerro Azul area baseline of €273,003 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx. Full condition report →
Neighbourhood score 65/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline. Full location report →
urbanização Cerro Azul
Area baseline €273,003 + condition +€8,447 + location +€16,380 = modelled fair value of €297,830 (€1,873/m²), a €972,170 (76.5%) gap versus the €1,270,000 asking price.
Long-term rental The property in Quelfes is overpriced, with a fair value of €321,931 compared to the listing price of €1,270,000, creating a substantial gap of 74.7%. The low gross yield of 2.1% suggests limited potential for generating attractive long-term rental income, making this property an unsuitable investment choice. Short-term vacation rental Given the high listing price compared to its fair value, the property is not a viable option for short-term vacation rental investments. The proximity to Algarve tourist attractions may not offset the overpriced nature of this property, which significantly diminishes its appeal within this strategy. Buy-and-hold Investing in this property as a buy-and-hold strategy is not advisable due to the significant overvaluation reflected in the €1,270,000 asking price versus its fair value of €321,931. Despite favorable conditions like the neighbourhood's amenities, the substantial premium being charged limits any reasonable expectation for long-term appreciation in value.
Moderate Economic Risk The economic stability score of 60 indicates potential fluctuations in market conditions that could impact rental incomes or property values in the future.
