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 €235,229 (€1,717/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. Full condition report →
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. Full location report →
avenida da República, 89
Area baseline €235,229 + 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.
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.
