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.
2-bedroom, 2-bathroom apartment of 92 m² on the 1st floor, energy rating B. Located on rua Nossa Senhora do Carmo, Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Noteworthy Feature: This apartment features a spacious terrace designed for entertaining, with unobstructed sea views that enhance its appeal for outdoor living in the Algarve climate.
The valuation. The asking price of €420,000 sits significantly above the fair value of €176,993, resulting in an excess of €243,007 (57.9%). This property is overpriced and does not represent a financially sound investment at this price point.
Fair value modelled at €176,993 from the area baseline, adjusted for condition and location. Asking €420,000 sits €243,007 (57.9%) above — overpriced versus fair value.
Asking €420,000 versus the rua Nossa Senhora do Carmo area baseline of €171,120 (€1,860/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 59/100 (Housing Market 60 · Amenities 50 · Economic 40 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua Nossa Senhora do Carmo
Area baseline €171,120 + condition -€288 + location +€6,160 = modelled fair value of €176,993 (€1,924/m²), a €243,007 (57.9%) gap versus the €420,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Nossa Senhora do Carmo | Subject | €420,000 | €4,565 | — | 72 | 59 |
| rua da Cegonha | Active | €460,000 | €5,000 | 9.5% | 75 | 64 |
| rua da Liberdade | Active | €397,000 | €4,841 | 6.1% | 75 | 65 |
| autoestrada N125 | Active | €265,000 | €3,155 | 30.9% | 70 | 60 |
| praça da República | Active | €799,000 | €4,296 | 5.9% | 75 | 70 |
| Median comp | €428,500 | €4,569 | 0.1% | 75 | 65 |
Short-term vacation rental This property is overpriced, creating challenges for profitability in the short-term vacation rental market, where it currently yields a mere 4.5% gross. The seasonal tourism influx in the coastal Algarve may not sufficiently offset the purchase price, leading to a precarious investment trajectory. Buy-and-hold With a fair value of €176,993, this property is substantially overpriced at €420,000, undermining long-term potential in the buy-and-hold strategy. The limited year-round employment opportunities in the rural Algarve further compound the risk of insufficient appreciation in property value over time. Value-add renovation The current state of the property, rated 75/100, doesn't justify the significant premium over its fair value, indicating it is overpriced. Although renovations could enhance appeal, the initial investment needed to close the glaring gap raises concerns about return on investment in a saturated market. Not ideal for Due to its location and pricing, this property is not suitable for student housing, luxury market investments, or long-term rentals, where demand is likely to drop. The neighbourhood’s limited amenities and the seasonal nature of tourism further limit its attractiveness for such strategies.
High Vacancy Risk With an economic stability score of 40/100, the potential for high vacancy rates increases, impacting rental income reliability and overall property profitability.
