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 204 m², built in 1951, energy rating C. Located on rua Teófilo Braga, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts exquisite period hydraulic tiles, lavish wooden floors, and a rooftop terrace offering unobstructed views of Olhão and the Ria Formosa, ideal for evening relaxation.
The valuation. The asking price of €980,000 is significantly below its fair value of €1,514,963, indicating it is underpriced by €534,963 (35.3%). This presents a strong buying opportunity for investors looking to capitalize on the discrepancy. Buy-to-flip angle. The property can be acquired and renovated to enhance its appeal, targeting resale at a higher price point within a favorable market, leveraging the strong demand in the Algarve region. Buy-to-let angle. With an estimated rental income of €1,470 per month, the gross yield is 1.8%, positioning this property as a stable option for long-term rental, particularly attractive due to its proximity to tourist-heavy areas.
Fair value modelled at €1,587,000 from 5 comparable sales in the area. Asking €980,000 sits €607,000 (38.2%) below — the upside to fair value.
Asking €980,000 versus the avenida da Liberdade area baseline of €1,493,446 (€7,321/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 is above the parish average, lifting 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 €1,493,446, adjusted for condition and micro-location, gives a modelled fair value of €1,587,000 (€7,779/m²), a €607,000 (38.2%) gap versus the €980,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida da Liberdade | Subject | €980,000 | €4,804 | — | 74 | 68 |
| Olhão · 6a92c5 | Active | €529,000 | €7,779 | 61.9% | 78 | 66 |
| Olhão · 5da049 | Active | €2,274,962 | €33,455 | 596.4% | 78 | 69 |
| rua Joaquim Agostinho, 10 | Active | €559,000 | €3,993 | 16.9% | 68 | — |
| rua Serpa Pinto | Active | €580,000 | €4,462 | 7.1% | 73 | 64 |
| Median comp | €569,500 | €6,121 | 27.4% | 76 | 66 |
Long-term rental Given the property’s fair value of €1,514,963 and a gap of 35.3% suggests a strong potential for increased rental income against the €980,000 asking price. With a gross yield of 1.8%, this investment could provide steady cash flow, particularly in a neighborhood with a decent score of 68/100 for tenant quality. Short-term vacation rental The property’s proximity to tourist-heavy areas in Algarve enhances its attractiveness for short-term vacation rentals, leveraging the demand from seasonal visitors. Even with a lower yield of 1.8%, the significant gap from fair value indicates upward potential in rental rates as tourism rebounds. Buy-and-hold As an investment, holding this property could yield substantial long-term capital appreciation, given its fair value of €1,514,963 overshadowing the listing price by over 35%. The condition rating of 80/100 supports a strong foundational asset for future market growth in a rural location with a generally lower crime rate. Not ideal for student housing The setting and location dynamics do not align with the demand typically found in student housing markets, limiting potential returns. Therefore, pursuing this strategy would not capitalise on the property’s advantages. Not ideal for luxury market While the home is well-maintained, the overall economic conditions and neighborhood quality suggest it won't appeal to high-net-worth individuals seeking luxury properties. The investment thesis is more aligned with middle-income renters and tourists rather than a luxury target audience.
Economic and Tenant Instability The combined economic and tenant stability score of 65/100 indicates a moderate risk of fluctuations in tenant retention 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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