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, 3-bathroom house of 68 m², energy rating C. Located Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts a generous private balcony on the second floor, perfect for enjoying sunsets, and features underfloor heating for added comfort in the main living areas.
The valuation. The asking price of €586,000 is significantly above fair value of €133,853, resulting in an excess of €452,147 (77.2%). Verdict: overpriced. Buy-to-flip angle. With strategic renovations, the property could be flipped for a profit, targeting buyers seeking luxury finishes in Olhão’s competitive market. Buy-to-let angle. A rental income strategy yielding approximately €1,221/month results in a gross yield of 2.5%, making long-term renting a viable option despite neighborhood dynamics.
Fair value modelled at €133,853 from the area baseline, adjusted for condition and location. Asking €586,000 sits €452,147 (77.2%) above — overpriced versus fair value.
Asking €586,000 versus the Olhão, Olhão, Faro area baseline of €201,484 (€2,963/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 84 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
Olhão, Olhão, Faro
Area baseline €201,484 + condition +€7,756 + location +€9,340 = modelled fair value of €133,853 (€1,968/m²), a €452,147 (77.2%) gap versus the €586,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · b7c196 | Subject | €586,000 | €8,618 | — | 80 | 70 |
| rua do Comércio, 96 | Active | €745,000 | €10,493 | 21.8% | 75 | 74 |
| Olhão · 0239df | Active | €745,000 | €10,493 | 21.8% | 74 | 80 |
| Olhão · cfddf5 | Active | €580,000 | €7,073 | 17.9% | 75 | 68 |
| rua Doutor Ataíde Oliveira | Active | €395,000 | €5,064 | 41.2% | 68 | 68 |
| Median comp | €662,500 | €8,783 | 1.9% | 75 | 71 |
Short-term vacation rental The current listing price of €586,000 represents a significant gap of 77.2% compared to its fair value of €133,853, indicating that this property is overpriced for the short-term vacation rental market. With a low gross yield of 2.5%, investors may struggle to justify the investment despite the property's proximity to tourism and beaches in Faro. Long-term rental At a listing price of €586,000, the substantial disparity with the fair value of €133,853 underscores that this property is overpriced for long-term rental purposes. Potential yields of 2.5% gross are insufficient to attract reliable tenants when weighed against the high purchase price. Buy-and-hold Investing in this property at €586,000, while its fair value is only €133,853, suggests it is overpriced for a buy-and-hold strategy, as the expected appreciation does not compensate for the initial cost. Additionally, the gross yield of 2.5% highlights the challenges of gaining sufficient financial return over time in this market.
Economic Vulnerability The combined economic and tenant stability scores of 65/100 indicate a moderate risk of fluctuations in income and occupancy, which may impact overall investment performance negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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