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.
1-bedroom, 3-bathroom house of 71 m², built in 2018, energy rating C. Located on rua do Comércio, 96, Olhão parish, Olhão municipality, Faro district. The property features a magnificent top-floor terrace with panoramic views over Olhão's historic churches and peaks, alongside a versatile ground-floor space suitable for business or studio use.
The valuation. The asking price of €745,000 considerably exceeds the fair value of €139,379 by €605,621 (81.3%). This property is clearly overpriced in the current market landscape.
Fair value modelled at €139,379 from the area baseline, adjusted for condition and location. Asking €745,000 sits €605,621 (81.3%) above — overpriced versus fair value.
Asking €745,000 versus the rua do Comércio, 96 area baseline of €210,373 (€2,963/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 75 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua do Comércio, 96
Area baseline €210,373 + condition +€5,769 + location +€11,703 = modelled fair value of €139,379 (€1,963/m²), a €605,621 (81.3%) gap versus the €745,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Comércio, 96 | Subject | €745,000 | €10,493 | — | 75 | 74 |
| rua Doutor Ataíde Oliveira | Active | €395,000 | €5,064 | 51.7% | 68 | 68 |
| Olhão · cfddf5 | Active | €580,000 | €7,073 | 32.6% | 75 | 68 |
| Olhão · 262065 | Active | €586,000 | €8,618 | 17.9% | — | 70 |
| Quelfes · 7355b0 | Active | €500,000 | €3,049 | 70.9% | 73 | 59 |
| Median comp | €540,000 | €6,069 | 42.2% | 73 | 68 |
Short-term vacation rental This property, priced at €745,000, is significantly above its fair value of €139,379, resulting in an 81.3% gap and a gross yield of only 1.5%. Given the seasonal economic influence expected in the Algarve, investing in this short-term rental is likely to underperform compared to alternatives that better align with market valuations. Buy-and-hold At €745,000, this property is overpriced compared to the fair value of €139,379, representing an 81.3% gap, which would severely restrict potential returns over time. With a gross yield of just 1.5%, this strategy lacks merit in a market that demands prudent financial assessments for long-term investments. Family rental With a list price of €745,000 far exceeding the fair value of €139,379, this property poses a financial risk, given the substantial 81.3% gap and a less-than-ideal gross yield of 1.5%. Therefore, investing in a family rental strategy here does not align with the current property market dynamics and may lead to unmet expectations. Not ideal for: Student housing, Value-add renovation, Industrial purposes This property is not suitable for student housing or value-add renovations due to its high price point compared to fair value, leading to diminished investment potential. Industrial purposes are also not a viable strategy as the property's characteristics and location do not support such use cases.
Economic Vulnerability The economic stability score of 65/100 indicates potential risks associated with local economic fluctuations that could impact tenant demand and property value over time.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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