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.
3-bedroom, 2-bathroom house of 222 m², energy rating G. Located Pechão parish, Olhão municipality, Faro district. Noteworthy Features: This property includes a preliminary architectural project valid until 2026 for expansive renovations, and it boasts generous outdoor space on a mixed plot of 2,840 m².
The valuation. The asking price of €400,000 is significantly above the fair value of €220,887, representing an overvaluation of €179,113 or 44.8%. This considerable discrepancy indicates a poor investment opportunity at the current asking price.
Fair value modelled at €220,887 from the area baseline, adjusted for condition and location. Asking €400,000 sits €179,113 (44.8%) above — overpriced versus fair value.
Asking €400,000 versus the Pechão, Olhão, Faro area baseline of €659,784 (€2,972/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 20/100 (Condition 15 · Materials 25 · Room dimensions 30). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 55 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Pechão, Olhão, Faro
Area baseline €659,784 + condition -€190,781 + location +€30,494 = modelled fair value of €220,887 (€995/m²), a €179,113 (44.8%) gap versus the €400,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · 6c798f | Subject | €400,000 | €1,802 | — | 15 | 70 |
| Quelfes · 23f394 | Active | €650,000 | €2,490 | 38.2% | 38 | 50 |
| rua Manuel Tomé Viegas Vaz | Active | €360,000 | €2,250 | 24.9% | — | 66 |
| rua da Cerca, 66 | Active | €365,000 | €2,786 | 54.6% | 40 | 61 |
| Quelfes · 6ebbfc | Active | €280,000 | €2,642 | 46.6% | 30 | 55 |
| Median comp | €362,500 | €2,566 | 42.4% | 38 | 58 |
Short-term vacation rental The property in Pechão is not an ideal candidate for a short-term vacation rental, as its listing price of €400,000 is considerably above the fair value of €220,887, indicating a 44.8% gap. Additionally, the property's condition score of 20/100 suggests significant renovations would be necessary to attract vacationers, making it a less appealing investment. Family rental Investing in this property as a family rental may not yield desirable returns, considering its current valuation of €400,000 versus a fair value of €220,887, resulting in a considerable overpricing of 44.8%. The neighbourhood's score of 70/100 indicates decent appeal, but the overall potential for profitability is hampered by the excessive purchase price and the poor condition of the house. Buy-and-hold Acquiring this property as a buy-and-hold investment is less favorable due to its listing price of €400,000 standing well above the fair value of €220,887, demonstrating a significant overpricing of 44.8%. While the location near the Algarve coast could offer future appreciation, the current entry point and the extensive renovations needed to improve its 20/100 condition detract from its long-term viability as a solid investment.
Economic Vulnerability The economic stability score of 55/100 indicates potential fluctuations in local market conditions, which could impact property value and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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