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.
2-bedroom, 2-bathroom apartment of 116 m², energy rating C. Located on rua Vasco da Gama, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: This apartment features extensive balconies accessible from all rooms and a communal terrace with stunning sea views, perfect for enjoying Algarve sunsets.
The valuation. The asking price of €270,000 is significantly above the fair value of €192,491, resulting in an overpriced assessment of €77,509 (28.7%). This elevated price does not present a viable investment opportunity. Buy-to-flip angle. A buy-to-flip strategy would be challenging given the high acquisition cost; the property would require substantial appreciation to achieve profitable resale in the current market environment. Buy-to-let angle. With an estimated gross yield of 5.2% (~€1,170/month), the property could potentially provide decent rental income, appealing for both short-term vacation rentals and long-term tenants due to its location near tourist hotspots in Algarve.
Fair value modelled at €192,491 from the area baseline, adjusted for condition and location. Asking €270,000 sits €77,509 (28.7%) above — overpriced versus fair value.
Asking €270,000 versus the rua Vasco da Gama area baseline of €341,736 (€2,946/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 66/100 (Condition 68 · Materials 63 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Vasco da Gama
Area baseline €341,736 + condition -€17,038 + location +€10,357 = modelled fair value of €192,491 (€1,659/m²), a €77,509 (28.7%) gap versus the €270,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Vasco da Gama | Subject | €270,000 | €2,328 | — | 68 | 63 |
| rua Almirante Reis | Active | €255,000 | €2,452 | 5.3% | 60 | 61 |
| Quelfes · 49b7b7 | Active | €290,000 | €2,589 | 11.2% | 74 | 60 |
| avenida da República S / N | Active | €259,000 | €2,564 | 10.2% | 72 | 71 |
| estrada de Quelfes | Active | €299,500 | €2,186 | 6.1% | 73 | 71 |
| Median comp | €274,500 | €2,508 | 7.8% | 73 | 66 |
Short-term vacation rental The 2-bed apartment in Olhão is overpriced at €270,000, significantly exceeding its fair value of €192,491 by 28.7%. With a gross yield of 5.2%, the return on investment for a vacation rental seems limited in this market. Long-term rental At a listing price that is 28.7% higher than its fair value, this property is not positioned favorably for long-term rental opportunities. The current gross yield of 5.2% does not adequately compensate for the premium over its fair value, making this investment less attractive. Buy-and-hold The property, currently overpriced, presents a 28.7% disconnect from its fair value, diminishing its potential for appreciation in a buy-and-hold strategy. With a condition score of 66/100 and a neighbourhood score of 63/100, the investment lacks the future growth catalyst needed to justify the higher initial cost.
Economic Volatility Risk: With an economic stability score of 60/100, the property may be vulnerable to fluctuations in the local economy, potentially impacting rental income and property value.
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