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, 3-bathroom house of 198 m², built in 1995, energy rating D. Located on rua Serpa Pinto, 17, Olhão parish, Olhão municipality, Faro district. This property features a traditional rooftop terrace offering breathtaking 360-degree views of Olhão and the Ria Formosa, enhancing both leisure and entertaining experiences.
The valuation. The asking price of €620,000 is significantly below the fair value of €873,546, representing an opportunity that is underpriced by €253,546, or 29.0%. Buy-to-flip angle. The property can be improved with minimal renovations and then resold for a higher price, leveraging its appealing finishes and location in a desirable tourist area. Buy-to-let angle. With an estimated gross yield of 2.7%, the property is poised for stable rental income, estimated at €1,395 per month, appealing to long-term tenants or seasonal vacation renters.
Fair value modelled at €873,546 from 6 comparable sales in the area. Asking €620,000 sits €253,546 (29.0%) below — the upside to fair value.
Asking €620,000 versus the rua Serpa Pinto, 17 area baseline of €808,373 (€4,083/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €808,373, adjusted for condition and micro-location, gives a modelled fair value of €873,546 (€4,412/m²), a €253,546 (29.0%) gap versus the €620,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Serpa Pinto, 17 | Subject | €620,000 | €3,131 | — | 70 | 62 |
| rua Serpa Pinto | Active | €580,000 | €4,028 | 28.6% | 73 | 69 |
| Olhão · 262065 | Active | €586,000 | €8,618 | 175.2% | — | 70 |
| rua das Lavadeiras | Active | €470,000 | €4,796 | 53.2% | 76 | 59 |
| Olhão · 6a92c5 | Active | €529,000 | €7,779 | 148.4% | 78 | 66 |
| Median comp | €554,500 | €6,288 | 100.8% | 76 | 68 |
Short-term vacation rental The property is well-positioned as a short-term vacation rental in the tourist hotspot of Algarve, where seasonal economic patterns attract visitors year-round. Given its fair value of €873,546, purchasing at €620,000 presents a compelling opportunity in a market with a 29.0% gap versus fair value. Buy-and-hold Investing in this property as a buy-and-hold strategy aligns with the upward trend of property values in the Algarve region, particularly given its current listing price of €620,000 versus the fair value of €873,546. The relatively modest gross yield of 2.7% can be justified by the potential for significant appreciation over time in a growing neighborhood. Family rental As a family rental option, the property offers ample space and a safe environment, appealing to families looking for long-term housing in Olhão. Although the neighborhood has a moderate score of 62/100, the significant gap to fair value reinforces that the property is underpriced at €620,000 compared to its fair value of €873,546.
Low Economic Growth Risk The economic stability score of 55 indicates potential challenges in local growth, which may negatively impact rental demand and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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