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, 2-bathroom apartment of 160 m², built in 2011, energy rating B. Located on rua Domingos Xavier Pereira, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The apartment offers direct access to a rooftop pool and has multiple balconies enhancing outdoor living experiences alongside unobstructed marina views. Interior Design: Modern finishes throughout complement the spacious layout.
The valuation. The asking price of €445,000 is significantly above the fair value of €305,901, representing an overvaluation by €139,099 (31.3%). This discrepancy suggests a cautionary stance for potential investors. Buy-to-flip angle. The buy-to-flip strategy in this case may be challenging due to the asking price being overpriced; significant appreciation might be necessary to achieve a profitable resale. Buy-to-let angle. With an estimated gross yield of 4.7%, the rental income strategy could yield approximately €1,743 per month, appealing for long-term rental in a tourism-driven area like the Algarve.
Fair value modelled at €305,901 from the area baseline, adjusted for condition and location. Asking €445,000 sits €139,099 (31.3%) above — overpriced versus fair value.
Asking €445,000 versus the rua Domingos Xavier Pereira area baseline of €274,720 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Domingos Xavier Pereira
Area baseline €274,720 + condition +€12,500 + location +€18,681 = modelled fair value of €305,901 (€1,912/m²), a €139,099 (31.3%) gap versus the €445,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Domingos Xavier Pereira | Subject | €445,000 | €2,781 | — | 78 | 67 |
| rua Custódio Domingos Pereira Neto, 7 | Active | €430,000 | €4,624 | 66.2% | 74 | 71 |
| Olhão · dbd477 | Active | €755,000 | €5,171 | 85.9% | 77 | 66 |
| urbanização Marina Village | Active | €430,000 | €4,674 | 68.1% | 74 | 70 |
| urbanização Sporting Clube Olhanense, 4 | Active | €375,000 | €3,409 | 22.6% | 72 | 63 |
| Median comp | €430,000 | €4,649 | 67.2% | 74 | 68 |
Short-term vacation rental The apartment's pricing at €445,000 reflects a 31.3% premium over its fair value of €305,901, making it a less attractive option for short-term vacation rentals in a competitive Algarve market. With a gross yield of only 4.7% and a neighborhood score of 67/100, the investment is unlikely to deliver the returns typically sought in this strategy. Long-term rental Given the current asking price, the potential for long-term rental remains hampered by the property's overvaluation of 31.3% against its fair value of €305,901. The yield of 4.7% is insufficient to attract long-term tenants in the Algarve, where pricing dynamics are critical for sustainability in this segment. Buy-and-hold Investing in this property as a buy-and-hold asset is not recommended, as it carries a significant overpricing of 31.3% compared to its fair value of €305,901. The combination of a low gross yield of 4.7% and a fair neighborhood condition suggests diminished capital appreciation potential, making it a risky long-term investment choice.
Economic Vulnerability There is a potential risk of reduced rental income or tenant turnover due to the economic stability score of 65/100, indicating moderate vulnerability to economic fluctuations.
