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, 5-bathroom country_house of 340 m², built in 2012, energy rating A. Located Pechão parish, Olhão municipality, Faro district. Noteworthy Features: The property includes a rooftop terrace with 360-degree panoramic views and a fully integrated Bang & Olufsen sound system, enhancing both outdoor and indoor experiences.
The valuation. The asking price of €1,550,000 is significantly above fair value at €668,312, representing an excess of €881,688 or 56.9%. Verdict: overpriced.
Fair value modelled at €668,312 from the area baseline, adjusted for condition and location. Asking €1,550,000 sits €881,688 (56.9%) above — overpriced versus fair value.
Asking €1,550,000 versus the Pechão, Olhão, Faro area baseline of €1,010,480 (€2,972/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 79 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Pechão, Olhão, Faro
Area baseline €1,010,480 + condition +€42,500 + location +€42,032 = modelled fair value of €668,312 (€1,966/m²), a €881,688 (56.9%) gap versus the €1,550,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · 6fbc88 | Subject | €1,550,000 | €4,559 | — | 79 | 68 |
| urbanização Cerro Azul | Active | €1,270,000 | €7,987 | 75.2% | 75 | 65 |
| rua Joaquim Agostinho | Active | €790,000 | €3,511 | 23.0% | 72 | 71 |
| caminho da Boavista | Active | €1,350,000 | €7,297 | 60.1% | 70 | 65 |
| Pechão · 99f3d6 | Active | €990,000 | €3,523 | 22.7% | 80 | 71 |
| Median comp | €1,130,000 | €5,410 | 18.7% | 74 | 68 |
Short-term vacation rental Despite the appeal of the Algarve's tourism, this property is overpriced by 56.9%, which renders it less attractive for short-term vacation rentals that typically thrive on competitive pricing. The 2.3% gross yield is inadequate given the property's high listing price compared to its fair value of €668,312. Long-term rental While the property’s condition is rated 85/100, making it appealing for long-term renters, the significant gap from fair value indicates that potential rental income will not justify the high purchase price of €1,550,000. A 2.3% gross yield further questions the viability of this investment in the long-term rental market. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable, as the 56.9% gap from its fair value suggests it is overpriced, limiting future appreciation potential. Additionally, the area's economic dynamics and seasonal employment trends may hinder consistent rental income growth over time.
Economic Volatility Risk: With both economic stability and tenant stability at 65/100, the property is exposed to potential fluctuations in demand and rental income, indicating a medium risk of financial instability.
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