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.
4-bedroom, 2-bathroom country_house of 281 m². Located Pechão parish, Olhão municipality, Faro district. Noteworthy Features: This property boasts a rooftop terrace with unobstructed views and an agricultural warehouse, ideal for gardening enthusiasts or small-scale farming projects.
The valuation. The asking price of €990,000 is significantly above the fair value of €555,057, representing an overpricing of €434,943 (43.9%). This indicates that the property is not positioned as a viable investment opportunity. Buy-to-flip angle. The resale strategy might involve renovations to enhance the property's appeal, aiming to capitalize on its premium condition. Targeting affluent buyers in the Algarve market could yield attractive profits if successfully executed. Buy-to-let angle. The gross yield of 3.6% with estimated rental income of €2,970/month suggests a relatively modest return from long-term rentals. Positioned in a tourist destination, short-term vacation rentals may maximize earnings potential, especially during peak seasons.
Fair value modelled at €555,057 from the area baseline, adjusted for condition and location. Asking €990,000 sits €434,943 (43.9%) above — overpriced versus fair value.
Asking €990,000 versus the Pechão, Olhão, Faro area baseline of €482,477 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Pechão, Olhão, Faro
Area baseline €482,477 + condition +€32,052 + location +€40,528 = modelled fair value of €555,057 (€1,975/m²), a €434,943 (43.9%) gap versus the €990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · 99f3d6 | Subject | €990,000 | €3,523 | — | 80 | 71 |
| rua Joaquim Agostinho | Active | €790,000 | €3,511 | 0.3% | 72 | 71 |
| Conceição e Estoi · 96c188 | Active | €799,000 | €6,658 | 89.0% | 78 | 53 |
| Quelfes · 99f3b2 | Active | €1,270,000 | €7,987 | 126.7% | 75 | 64 |
| Conceição e Estoi · f36034 | Active | €1,785,000 | €10,625 | 201.6% | 80 | 70 |
| Median comp | €1,034,500 | €7,323 | 107.8% | 77 | 67 |
Short-term vacation rental This property, despite its attractive location in the Algarve, is overpriced by 43.9% compared to its fair value of €555,057, which limits the potential for profitable short-term vacation rental returns. With a gross yield of only 3.6% in a seasonal economy, the financial prospects do not align with the elevated asking price. Long-term rental The price of €990,000 makes this property less competitive in the long-term rental market, given that it is significantly above its fair value, leaving little room for market-driven rental rates. With the condition at 82/100 and a neighborhood score of 71/100, the property’s pricing may deter potential long-term tenants who are seeking better value. Buy-and-hold Holding this property could yield disappointing returns given its current overpricing, with a significant gap from the fair value implying limited capital appreciation potential. The 3.6% gross yield suggests that investing in this property may result in negative cash flows over time, making it a risky buy-and-hold strategy. Not ideal for This property is not suitable for the student housing market due to its high price point, which would not attract the target demographic looking for affordable living options. Additionally, the luxury market will likely overlook it, given the current value mismatch and the absence of exceptional features that justify such a premium asking price.
Economic Volatility With an economic stability score of 65/100, there is a risk of fluctuating market conditions that could impact rental income and property value.
