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 99 m² on the 2nd floor, energy rating A. Located on avenida Dom João VI, Quelfes parish, Olhão municipality, Faro district. Noteworthy Features: This apartment boasts a huge glass door leading to a terrace, enhancing outdoor leisure opportunities and providing exceptional natural light throughout the living spaces.
The valuation. The asking price of €399,000 sits €207,803 (52.1%) above the fair value of €191,197, indicating that the property is overpriced. This significant disparity suggests a need for negotiation or reconsideration of the investment. Buy-to-flip angle. A buy-to-flip strategy would focus on improving the apartment's high-quality finishes to enhance its appeal, aiming for a quick resale at a higher price, leveraging the strong tourist demand in the Algarve area. Buy-to-let angle. The estimated rental income of €964/month offers a gross yield of 2.9%, making it suitable for a buy-and-hold strategy as a family rental or short-term vacation rental, capitalizing on the region's tourist influx and appeal.
Fair value modelled at €191,197 from the area baseline, adjusted for condition and location. Asking €399,000 sits €207,803 (52.1%) above — overpriced versus fair value.
Asking €399,000 versus the avenida Dom João VI area baseline of €269,082 (€2,718/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 87/100 (Condition 85 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
avenida Dom João VI
Area baseline €269,082 + condition +€12,375 + location +€8,839 = modelled fair value of €191,197 (€1,931/m²), a €207,803 (52.1%) gap versus the €399,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida Dom João VI | Subject | €399,000 | €4,030 | — | 85 | 63 |
| urbanização Sporting Clube Olhanense, 4 | Active | €375,000 | €3,409 | 15.4% | 72 | 63 |
| urbanização Sporting Clube Olhanense, 4 | Active | €361,000 | €3,282 | 18.6% | 73 | 63 |
| rua Domingos Xavier Pereira | Active | €375,000 | €3,827 | 5.1% | 78 | 70 |
| Olhão · 4d4668 | Active | €725,000 | €4,801 | 19.1% | 72 | 73 |
| Median comp | €375,000 | €3,618 | 10.2% | 73 | 67 |
Short-term vacation rental\nWith a listing price of €399,000, the property is significantly overpriced compared to its fair value of €191,197, creating a gap of 52.1%. Although the proximity to coastal amenities suggests potential for tourism, the gross yield of 2.9% does not justify the current price point, making it an unattractive option for short-term rentals.\n\nBuy-and-hold\nThe current listing price greatly exceeds the fair value, indicating that investing in this property as a buy-and-hold strategy would not be financially sound. Given its gross yield of 2.9% and the general conditions of the property, the long-term appreciation prospects appear limited, further reinforcing its overpriced status.\n\nFamily rental\nAt €399,000, this property is overpriced when compared to the fair value of €191,197, suggesting that potential returns on a family rental strategy are minimal. Despite a decent condition score of 87/100, the gross yield of 2.9% indicates that the property may not attract families looking for cost-effective renting solutions in a market like Olhão.
Tenant turnover risk With a tenant stability score of 65/100, there is a moderate risk of tenant turnover affecting cash flow and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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