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 apartment of 137 m². Located on avenida da República, 89, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The apartment features two balconies, including a larger enclosed balcony that seamlessly enhances indoor-outdoor living, ideal for year-round enjoyment of Olhão's beautiful climate.
The valuation. The asking price of €395,000 sits significantly above the fair value of €238,644, making it overpriced by €156,356 (39.6%). This suggests that potential investors should be cautious.
Fair value modelled at €238,644 from the area baseline, adjusted for condition and location. Asking €395,000 sits €156,356 (39.6%) above — overpriced versus fair value.
Asking €395,000 versus the avenida da República, 89 area baseline of €403,602 (€2,946/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 75 · Materials 70 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 60/100 (Housing Market 60 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
avenida da República, 89
Area baseline €403,602 + condition -€5,994 + location +€9,409 = modelled fair value of €238,644 (€1,742/m²), a €156,356 (39.6%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida da República, 89 | Subject | €395,000 | €2,883 | — | 75 | 60 |
| Quelfes · 99f3ab | Active | €310,000 | €3,333 | 15.6% | 80 | 68 |
| Quelfes · 99f4fa | Active | €359,000 | €3,205 | 11.2% | 70 | 58 |
| praceta José Leal Junior, 2 | Active | €450,000 | €2,866 | 0.6% | 64 | 61 |
| urbanização João de Ourém | Active | €355,000 | €3,008 | 4.3% | 75 | 70 |
| Median comp | €357,000 | €3,107 | 7.7% | 73 | 65 |
Short-term vacation rental A short-term vacation rental strategy is less compelling for this 3-bed apartment, given that it is overpriced by 39.6% compared to fair value, inhibiting potential profitability. The predicted gross yield of 3.9% indicates that financial returns are unlikely to meet investor expectations in a competitive rental market. Long-term rental Implementing a long-term rental strategy for this property may result in stagnant cash flow due to its overpriced status, which sits 39.6% above fair value. Additionally, the modest tenant quality and neighborhood rating suggest a limited tenant pool, further complicating rental income potential. Buy-and-hold A buy-and-hold strategy appears unfavorable given the significant gap between the listing price and fair value, with the property being overpriced by 39.6%. Although the Algarve’s tourist influence adds some stability, the overall investment outlook remains compromised by inflated initial acquisition costs.
Economic-tenant instability risk The combined economic stability score of 60/100 and tenant stability score of 60/100 suggests a potential risk of fluctuating rental income and increased vacancy rates.
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