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.
5-bedroom, 4-bathroom house of 276 m², built in 1977, energy rating F. Located Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Highlight: The property's stunning 108 m² rooftop terrace features an outdoor kitchen and panoramic views of Fuseta and Ria Formosa, perfect for entertaining and enjoying Algarve's evenings.
The valuation. The asking price of €1,200,000 sits significantly above the fair value of €554,020, creating a discrepancy of €645,980 (53.8%). Verdict: overpriced. Buy-to-flip angle. A resale or wholesale strategy may not be viable due to the steep purchase price above fair market value. Buy-to-let angle. With an estimated gross yield of 2.4% and potential rental income of €2,400/month, the investment may not provide attractive returns in the current market environment.
Fair value modelled at €554,020 from the area baseline, adjusted for condition and location. Asking €1,200,000 sits €645,980 (53.8%) above — overpriced versus fair value.
Asking €1,200,000 versus the Moncarapacho e Fuseta, Olhão, Faro area baseline of €513,360 (€1,860/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 78 · Materials 88 · Room dimensions 86). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 53/100 (Housing Market 60 · Amenities 55 · Economic 50 · Tenant Quality 45). Strong amenities and housing-market momentum support a premium to baseline.
Moncarapacho e Fuseta, Olhão, Faro
Area baseline €513,360 + condition +€34,500 + location +€6,160 = modelled fair value of €554,020 (€2,007/m²), a €645,980 (53.8%) gap versus the €1,200,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Moncarapacho e Fuseta · de0c40 | Subject | €1,200,000 | €4,348 | — | 78 | 53 |
| Moncarapacho e Fuseta · 4a8040 | Active | €1,200,000 | €4,348 | 0% | 78 | 63 |
| Moncarapacho e Fuseta · 49b7ff | Active | €850,000 | €4,474 | 2.9% | 65 | 63 |
| jardim Pechão | Active | €550,000 | €6,875 | 58.1% | 72 | 64 |
| Moncarapacho e Fuseta · 388d3b | Active | €485,900 | €2,271 | 47.8% | 72 | 70 |
| Median comp | €700,000 | €4,411 | 1.5% | 72 | 64 |
Short-term vacation rental Given the property's location in a coastal and touristic area, its potential yield of 2.4% is insufficient compared to its listing price of €1,200,000, which reflects a 53.8% overpricing against a fair value of €554,020. Short-term rentals may attract seasonal tenants, but the high purchase price limits the property's profitability and overall appeal. Long-term rental With a gross yield of 2.4% and a fair value gap of 53.8%, this property is not suitable for long-term rental investment given its overvaluation at €1,200,000. The neighbourhood score of 53/100 suggests limited tenant quality, further diminishing the investment viability and returns of this property. Not ideal for luxury market This property does not meet the criteria for luxury market investments, as its position is compromised by significant overpricing, evidenced by a fair value of only €554,020. The condition rating of 85/100 does not justify the luxury market status when paired with its inflated asking price. Not ideal for student housing While the location could be appealing for student housing, the property’s valuation at €1,200,000 makes it largely impractical given its fair value of €554,020. The overall factors contributing to the overpriced nature of this property, including its current yield, deter an effective transition to this market segment.
Economic and Tenant Instability Given an economic stability score of 50/100 and a tenant stability score of 45/100, there is a significant risk that fluctuations in the local economy and high tenant turnover could adversely affect rental income and overall property value.
