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, 1-bathroom apartment of 118 m², built in 2008, energy rating D. Located on urbanização João de Ourém, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The property includes a spacious living area that leads to a sunlit balcony, perfect for enjoying the pleasant Algarve climate throughout the day.
The valuation. The asking price of €355,000 exceeds the fair value of €217,893 by €137,107 (38.6%), indicating that the property is overpriced. This discrepancy suggests a lack of immediate equity for potential buyers. Buy-to-flip angle. A buy-to-flip strategy may prove challenging, as reselling at the asking price would likely require substantial market appreciation to justify the price difference. Short-term gains are uncertain given current market conditions. Buy-to-let angle. The projected rental yield of 4% equates to approximately €1,183 per month, making the rental income strategy viable. With stable tourism demand in the Coastal Algarve, long-term and short-term rentals may provide steady cash flow opportunities.
Fair value modelled at €217,893 from the area baseline, adjusted for condition and location. Asking €355,000 sits €137,107 (38.6%) above — overpriced versus fair value.
Asking €355,000 versus the urbanização João de Ourém area baseline of €202,606 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 75 · Materials 76 · Room dimensions 73). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
urbanização João de Ourém
Area baseline €202,606 + condition -€922 + location +€16,208 = modelled fair value of €217,893 (€1,847/m²), a €137,107 (38.6%) gap versus the €355,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização João de Ourém | Subject | €355,000 | €3,008 | — | 75 | 70 |
| Quelfes · 99f4fa | Active | €359,000 | €3,205 | 6.5% | 70 | 58 |
| Olhão · 99f2a2 | Active | €310,000 | €3,605 | 19.8% | 70 | 62 |
| Quelfes · 957083 | Active | €265,000 | €3,533 | 17.4% | 70 | 60 |
| avenida da República, 89 | Active | €395,000 | €2,883 | 4.2% | 75 | 60 |
| Median comp | €334,500 | €3,369 | 12.0% | 70 | 60 |
Long-term rental This 2-bed apartment in Olhão, listed at €355,000, is significantly above its fair value of €217,893, indicating a 38.6% gap that suggests it is overpriced. With a gross yield of only 4% and a condition rating of 75/100, the potential returns may not justify the initial investment cost. Short-term vacation rental Given the high listing price of €355,000 against a fair value of €217,893, this property appears overpriced by 38.6% and could limit profitability in the competitive vacation rental market. While the Algarve's tourism-driven demand is robust, the yield of 4% reflects potentially lower returns against more competitively priced alternatives. Buy-and-hold Although Olhão boasts good amenities and a favorable coastal location, the property is overpriced at €355,000 compared to a fair value of €217,893, resulting in a 38.6% discrepancy. This discrepancy raises concerns about long-term capital appreciation and return on investment in a market where appreciation may not compensate for the high entry price.
Potential Vacancy Risk The economic stability score of 65/100 indicates a moderate risk of economic downturns that could lead to decreased demand and potential vacancies for tenants, given the tenant stability score of 70/100 is still relatively strong but not exceptional.
