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.
5-bedroom, 2-bathroom apartment of 196 m², energy rating F. Located on rua Dâmaso da Encarnação, Quelfes parish, Olhão municipality, Faro district. Key Feature: The apartment boasts a fantastic private terrace, cleverly designed for relaxation and hosting, complete with lounge and dining areas benefiting from excellent sun exposure.
The valuation. The asking price of €400,000 is €31,211 (7.8%) above the fair value of €368,789, indicating that this property is overpriced in the current market.
Fair value modelled at €368,789 from the area baseline, adjusted for condition and location. Asking €400,000 sits €31,211 (7.8%) above — overpriced versus fair value.
Asking €400,000 versus the rua Dâmaso da Encarnação area baseline of €336,532 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 80 · Materials 75 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 66/100 (Housing Market 70 · Amenities 70 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Dâmaso da Encarnação
Area baseline €336,532 + condition +€10,719 + location +€21,538 = modelled fair value of €368,789 (€1,882/m²), a €31,211 (7.8%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Dâmaso da Encarnação | Subject | €400,000 | €2,041 | — | 80 | 66 |
| Quelfes · 0dce47 | Active | €240,000 | €2,202 | 7.9% | 75 | 63 |
| Quelfes · 96c438 | Active | €289,000 | €2,535 | 24.2% | 70 | 62 |
| Olhão · 65a817 | Active | €540,000 | €2,813 | 37.8% | 73 | 63 |
| rua José Agostinho de Macedo, 8 | Active | €244,500 | €2,397 | 17.5% | 72 | 61 |
| Median comp | €266,750 | €2,466 | 20.8% | 73 | 63 |
Long-term rental The 5-bed apartment in Quelfes is overpriced at €400,000, exceeding the fair value of €368,789 by 7.8%. With a gross yield of 0% and a neighborhood rating of only 66/100, the potential for steady long-term rental income is insufficient to justify the high price. Short-term vacation rental Considering the property’s high listing price and lack of yield, it positions itself poorly for short-term vacation rental opportunities. Given the competitive nature of the Algarve coast's tourism market, this apartment is unlikely to generate the desired returns at the current valuation. Buy-and-hold Investing in this apartment as a buy-and-hold strategy seems unfavorable, as it is overpriced at €400,000 compared to the fair value of €368,789. The combination of a low yield and a somewhat dated condition rating of 79/100 suggests the risks outweigh the potential for long-term appreciation in value.
Economic downturn risk The economic stability score of 60/100 suggests potential vulnerability to market fluctuations, which may affect rental income and property value.
