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 on rua dos Sete Cotovelos, 8, Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts a private terrace on the top floor, offering a secluded outdoor space perfect for enjoying the Algarve climate and scenic views. Renovation Quality: The house combines modern finishes with the authentic character of traditional Algarve architecture, creating a refined and elegant home atmosphere.
The valuation. The asking price of €586,000 exceeds the fair value of €288,735 by €297,265, indicating it is overpriced at 103.0%. This disconnection suggests limited upside potential for investors seeking immediate value.
Fair value modelled at €288,735 from 6 comparable sales in the area. Asking €586,000 sits €297,265 (103.0%) above — overpriced versus fair value.
Asking €586,000 versus the rua dos Sete Cotovelos, 8 area baseline of €233,773 (€3,438/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 €233,773, adjusted for condition and micro-location, gives a modelled fair value of €288,735 (€4,246/m²), a €297,265 (103.0%) gap versus the €586,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua dos Sete Cotovelos, 8 | Subject | €586,000 | €8,618 | — | 80 | 63 |
| Moncarapacho e Fuseta · 9113e9 | Active | €289,000 | €4,129 | 52.1% | 85 | 61 |
| Moncarapacho e Fuseta · b7b7fd | Active | €595,000 | €3,420 | 60.3% | 75 | 59 |
| Moncarapacho e Fuseta · 001825 | Active | €595,000 | €3,650 | 57.6% | 78 | 63 |
| Quelfes · 65307e | Active | €2,299,000 | €7,846 | 8.9% | 81 | 61 |
| Median comp | €595,000 | €3,890 | 54.9% | 80 | 61 |
Short-term vacation rental The property is overpriced at €586,000, significantly exceeding its fair value of €288,735, which diminishes its attractiveness for short-term vacation rentals. Given the 1.9% gross yield and the economic factors influenced by tourism, this investment lacks the potential return needed to justify the high price. Buy-and-hold This property is currently priced at a steep 103.0% above its fair market value, making it less viable for a long-term buy-and-hold investment strategy. With a yield of only 1.9% and a neighborhood score of 63/100, the prospects for appreciation do not align with the exorbitant purchase price. Value-add renovation Though renovations could improve the property's appeal, the listing price of €586,000 lacks justification against the fair value of €288,735, making it a challenging value-add opportunity. The current condition rating of 78/100 suggests limited immediate necessity for renovations, but the high entry cost undermines potential returns on these improvements.
Economic Vulnerability The property faces economic risk due to a low economic stability score of 50/100, indicating potential challenges in income and investment returns. Tenant Instability A tenant stability score of 60/100 suggests the possibility of higher turnover rates and associated costs, impacting long-term profitability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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