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 house of 82 m², built in 1951. Located Olhão parish, Olhão municipality, Faro district. This property features a spacious terrace with a pergola, providing an ideal setting for outdoor entertaining or relaxing while enjoying the charms of Olhão's traditional architecture.
The valuation. The asking price of €580,000 is significantly above the fair value of €157,081, representing an overvaluation of €422,919 (72.9%). This property is not a viable investment given its inflated price tag.
Fair value modelled at €157,081 from the area baseline, adjusted for condition and location. Asking €580,000 sits €422,919 (72.9%) above — overpriced versus fair value.
Asking €580,000 versus the Olhão, Olhão, Faro area baseline of €241,572 (€2,946/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 82 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 80 · Amenities 70 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Olhão, Olhão, Faro
Area baseline €241,572 + condition +€6,150 + location +€10,137 = modelled fair value of €157,081 (€1,916/m²), a €422,919 (72.9%) gap versus the €580,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · cfddf5 | Subject | €580,000 | €7,073 | — | 75 | 68 |
| Olhão · 262065 | Active | €586,000 | €8,618 | 21.8% | — | 70 |
| Quelfes · 7355b0 | Active | €500,000 | €3,049 | 56.9% | 73 | 59 |
| rua das Lavadeiras | Active | €470,000 | €4,796 | 32.2% | 76 | 59 |
| rua Joaquim Agostinho | Active | €790,000 | €3,511 | 50.4% | 72 | 71 |
| Median comp | €543,000 | €4,154 | 41.3% | 73 | 65 |
Short-term vacation rental Despite the appeal of Olhão as a tourist destination, the current listing price of €580,000 far exceeds its fair value of €157,081, leading to a significant gap of 72.9%. With a gross yield of only 2.1%, the investment potential appears limited, suggesting a lack of attractiveness for short-term rentals in this overpriced market. Long-term rental At a listing price of €580,000, the property is priced at 72.9% above its fair value of €157,081, which diminishes its viability as a long-term rental investment. The gross yield of 2.1% further indicates that this property does not provide favorable returns for landlords in this overpriced category. Value-add renovation Although renovation could potentially enhance the property's appeal, the excessive listing price of €580,000, when compared to the fair value of €157,081 (a gap of 72.9%), signifies an inflated market entry point. Investors may find it challenging to recoup renovation costs amidst a gross yield of only 2.1%, positioning this opportunity unfavorably in an overpriced landscape.
Economic Vulnerability With both economic and tenant stability scores at 60/100, there is a significant risk that fluctuations in the local economy could exacerbate tenant turnover and vacancy rates, potentially impacting rental income.
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