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, 1-bathroom house of 210 m², built in 1993, energy rating B. Located on caminho de Sao Sebastiao, Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Noteworthy features: The property includes a substantial annex beneath the pool terrace, offering adaptable space for various purposes, along with a separate traditional ruin allowing for future development potential.
The valuation. The asking price of €1,395,000 is significantly above its fair value of €435,599, representing an overvaluation of €959,401 (68.8%). This indicates that the property is overpriced and does not justify the current market demands.
Fair value modelled at €435,599 from the area baseline, adjusted for condition and location. Asking €1,395,000 sits €959,401 (68.8%) above — overpriced versus fair value.
Asking €1,395,000 versus the caminho de Sao Sebastiao area baseline of €622,020 (€2,962/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 82 · Materials 87 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
caminho de Sao Sebastiao
Area baseline €622,020 + condition +€26,250 + location +€18,749 = modelled fair value of €435,599 (€2,074/m²), a €959,401 (68.8%) gap versus the €1,395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| caminho de Sao Sebastiao | Subject | €1,395,000 | €6,643 | — | 82 | 62 |
| Moncarapacho e Fuseta · 4201d2 | Active | €990,000 | €2,912 | 56.2% | 72 | 54 |
| Quelfes · 82c724 | Active | €480,000 | €4,364 | 34.3% | 73 | 56 |
| Moncarapacho e Fuseta · f36390 | Active | €460,000 | €2,473 | 62.8% | 78 | 57 |
| urbanização Cerro Azul | Active | €1,270,000 | €7,987 | 20.2% | 75 | 65 |
| Median comp | €735,000 | €3,638 | 45.2% | 74 | 57 |
Long-term rental The property is overpriced at €1,395,000 compared to the fair value of €435,599, resulting in a significant 68.8% gap. With a gross yield of only 1.6%, this investment may not provide the desirable long-term returns typical for rental properties. Short-term vacation rental At a listing price significantly above fair value, this property may struggle to attract visitors, especially with a yield of just 1.6%. The seasonal nature of tourism in the area may further exacerbate the risk of investing in this overpriced asset. Buy-and-hold With an asking price that is 68.8% above fair market value, the potential for capital appreciation in this property is diminished. For a buy-and-hold strategy, the current yield of 1.6% suggests that this investment is unlikely to align with traditional expectations for long-term growth and income generation.
Economic and Tenant Risk The property has an economic stability score of 60/100 and a tenant stability score of 60/100, indicating potential volatility in rental income due to economic fluctuations and tenant turnover risks.
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