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.
1-bedroom, 3-bathroom house of 71 m², built in 2018, energy rating C. Located Olhão parish, Olhão municipality, Faro district. Noteworthy Features: This property boasts a charming private outdoor space designed for relaxation, as well as a top-floor terrace offering breathtaking views of Olhão's historic churches and the surrounding mountains.
The valuation. The asking price of €745,000 is significantly above the fair value of €138,755, indicating an excessive premium of €606,245 (81.4%). This property is therefore overpriced. Buy-to-flip angle. Given the substantial markup over fair value, a buy-to-flip strategy would require aggressive renovation and marketing to recapture costs and generate expected profit margins. Quick resale is unlikely without significant market changes. Buy-to-let angle. With an estimated gross yield of 1.5% (~€931/month), the rental strategy for this property should focus on short-term vacation rentals, capitalizing on the Algarve's strong tourism demand. However, returns remain modest.
Fair value modelled at €138,755 from the area baseline, adjusted for condition and location. Asking €745,000 sits €606,245 (81.4%) above — overpriced versus fair value.
Asking €745,000 versus the Olhão, Olhão, Faro area baseline of €209,166 (€2,946/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 74 · Materials 80 · Room dimensions 76). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 80/100 (Housing Market 80 · Amenities 85 · Economic 70 · Tenant Quality 85). Strong amenities and housing-market momentum support a premium to baseline.
Olhão, Olhão, Faro
Area baseline €209,166 + condition +€2,219 + location +€14,629 = modelled fair value of €138,755 (€1,954/m²), a €606,245 (81.4%) gap versus the €745,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · 0239df | Subject | €745,000 | €10,493 | — | 74 | 80 |
| rua Doutor Ataíde Oliveira | Active | €395,000 | €5,064 | 51.7% | 68 | 68 |
| Olhão · 262065 | Active | €586,000 | €8,618 | 17.9% | — | 70 |
| Olhão · cfddf5 | Active | €580,000 | €7,073 | 32.6% | 75 | 68 |
| Quelfes · 7355b0 | Active | €500,000 | €3,049 | 70.9% | 73 | 59 |
| Median comp | €540,000 | €6,069 | 42.2% | 73 | 68 |
Short-term vacation rental This property, listed at €745,000, is significantly overpriced, with a fair value of only €138,755, resulting in an 81.4% gap. With a gross yield of just 1.5%, it fails to offer an attractive return on investment for short-term rental opportunities. Buy-and-hold Investing in this property for a buy-and-hold strategy is not advisable due to its overpricing, as the fair value is far below the listing price, indicating a significant market mismatch. The 1.5% yield suggests that long-term capital appreciation might not compensate for the initial high acquisition cost. Family rental As a family rental, this house is overpriced at €745,000 compared to a fair value of €138,755, indicating that potential tenants may seek more cost-effective housing options. The current conditions and neighborhood ratings do not justify such a high asking price, making it a less appealing choice for families looking for quality rental housing.
Economic Volatility A score of 70/100 in economic stability indicates potential fluctuations in the local economy that could affect property value and rental demand.
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