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, 4-bathroom house of 249 m², built in 2003, energy rating C. Located on urbanização Cerro Azul, Quelfes parish, Olhão municipality, Faro district. Noteworthy Features: The property’s independent lower floor access allows for versatile use as a guest suite, home office, or separate dwelling, enhancing its appeal for diverse lifestyles.
The valuation. The asking price of €1,395,000 significantly exceeds its fair value of €471,552 by €923,448 (66.2%), rendering it overpriced. This indicates potential challenges in achieving a profitable investment. Buy-to-flip angle. A buy-to-flip strategy may struggle due to the initial high purchase price and market fluctuations; significant investment in renovations may be necessary to attract buyers. Buy-to-let angle. With an estimated gross yield of 2.9% (€3,371/month), a long-term rental strategy might generate steady income, but the high initial cost limits profitability and cash flow.
Fair value modelled at €471,552 from the area baseline, adjusted for condition and location. Asking €1,395,000 sits €923,448 (66.2%) above — overpriced versus fair value.
Asking €1,395,000 versus the urbanização Cerro Azul area baseline of €676,782 (€2,718/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 78 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Cerro Azul
Area baseline €676,782 + condition +€21,787 + location +€22,232 = modelled fair value of €471,552 (€1,894/m²), a €923,448 (66.2%) gap versus the €1,395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Cerro Azul | Subject | €1,395,000 | €5,602 | — | 78 | 63 |
| rua Joaquim Agostinho | Active | €790,000 | €3,511 | 37.3% | 72 | 71 |
| rua das Lavadeiras | Active | €470,000 | €4,796 | 14.4% | 76 | 59 |
| Quelfes · 4d47d9 | Active | €650,000 | €2,500 | 55.4% | 75 | 67 |
| caminho da Boavista | Active | €1,350,000 | €7,297 | 30.3% | 70 | 65 |
| Median comp | €720,000 | €4,154 | 25.9% | 74 | 66 |
Short-term vacation rental The property’s asking price of €1,395,000 far exceeds its fair value of €471,552, creating a striking gap of 66.2% that signals a significant overvaluation. With a gross yield of only 2.9%, this investment does not align with the typical returns expected in the vacation rental market. Long-term rental At a listing price of €1,395,000, the property fails to present a viable long-term rental opportunity given its fair value of €471,552, marking it as overpriced by 66.2%. The low yield of 2.9% further diminishes its attractiveness for long-term rental strategies, indicating subpar return potential. Buy-and-hold The substantial price of €1,395,000 against a fair value of €471,552 constitutes a 66.2% overvaluation, making this a less desirable buy-and-hold investment. With a gross yield of just 2.9%, the property does not promise favorable long-term returns, especially in the fluctuating Algarve market.
Economic and Tenant Volatility: With both economic stability and tenant stability scores at 60/100, there is a significant risk that fluctuations in the local economy could lead to increased vacancy rates or rent payment issues, impacting cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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