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.
4-bedroom, 3-bathroom house of 208 m², built in 1993, energy rating C. Located on rua de Arte Nova, Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts a mature garden with various fruit trees, offering a serene outdoor space perfect for leisure and privacy in the heart of Ria Formosa. Condition Notes: While generally well-maintained, some areas show minor wear, suggesting opportunities for updates.
The valuation. The asking price of €585,000 exceeds the fair value of €382,778 by €202,222 (34.6%). This property is overpriced compared to market standards.
Fair value modelled at €382,778 from the area baseline, adjusted for condition and location. Asking €585,000 sits €202,222 (34.6%) above — overpriced versus fair value.
Asking €585,000 versus the rua de Arte Nova area baseline of €386,880 (€1,860/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 (Condition 65 · Materials 70 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 61/100 (Housing Market 65 · Amenities 70 · Economic 50 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua de Arte Nova
Area baseline €386,880 + condition -€21,125 + location +€17,023 = modelled fair value of €382,778 (€1,840/m²), a €202,222 (34.6%) gap versus the €585,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Arte Nova | Subject | €585,000 | €2,813 | — | 65 | 61 |
| Moncarapacho e Fuseta · f36390 | Active | €460,000 | €2,473 | 12.1% | 78 | 57 |
| Moncarapacho e Fuseta · dbd469 | Active | €495,000 | €4,420 | 57.1% | 58 | 55 |
| jardim Pechão | Active | €550,000 | €6,875 | 144.4% | 72 | 64 |
| Moncarapacho e Fuseta · 4201d2 | Active | €990,000 | €2,912 | 3.5% | 72 | 54 |
| Median comp | €522,500 | €3,666 | 30.3% | 72 | 56 |
Short-term vacation rental\nGiven the property's listing price of €585,000, which is significantly above the fair value of €382,778 by 34.6%, it is hard to justify investment in this strategy. The current gross yield of 3.1% is disappointing, especially in the context of a highly competitive vacation rental market in the Algarve, where better opportunities may exist.\n\nBuy-and-hold\nThe buy-and-hold strategy is not advisable for this property, as its fair value gap of 34.6% indicates an inflated price that does not reflect the long-term growth potential in the area. With a condition score of 69 and neighbourhood score of 61, the property may struggle to appreciate sufficiently to justify its current asking price.\n\nFamily rental\nInvesting in this property for family rental purposes can be deemed unwise, considering it is priced 34.6% above its fair value of €382,778, which poses a risk to profitability. The low gross yield of 3.1% combined with a mediocre neighbourhood score may not attract enough tenant demand to support a sustainable rental income.
Economic Vulnerability The economic stability score of 50 indicates significant risks in the local economy, which may lead to higher vacancy rates and lower tenant retention; combined with a tenant stability score of 60, this suggests potential challenges in maintaining consistent rental income.
