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.
4-bedroom, 2-bathroom house of 320 m², built in 1993, energy rating D. Located Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Noteworthy Feature: This unique castle-style house features a distinctive stone tower and offers panoramic sea views from the pool area, enhancing its charm and appeal. Condition Notes: Sold as is, requiring legalization costs to be borne by the new owner.
The valuation. The asking price of €320,000 is significantly below the fair value of €616,180, presenting an opportunity with a difference of €296,180, or 48.1%. The property is considered underpriced in a thriving market. Buy-to-flip angle. By renovating the 4-bed, 2-bath house, a buy-to-flip strategy could capitalize on the demand, allowing for a lucrative resale at a much higher price point. Anticipating regional appreciation, this strategy aims at quick returns. Buy-to-let angle. With an estimated rental income of €2,827/month, the property boasts a gross yield of 10.6%. This makes it an attractive option for long-term rental, especially given the area's reliance on tourism.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Moncarapacho e Fuseta · 19088c | Subject | €320,000 | €1,000 | — | — | 64 |
| Moncarapacho e Fuseta · f5ebad | Active | €249,000 | €566 | 43.4% | — | 64 |
| Moncarapacho e Fuseta · b7c070 | Active | €198,000 | €1,817 | 81.7% | — | 73 |
| Moncarapacho e Fuseta · 3896de | Active | €525,000 | €1,855 | 85.5% | 39 | 65 |
| rua Pereiro, 1 | Active | €499,000 | €1,996 | 99.6% | — | 68 |
| Median comp | €374,000 | €1,836 | 83.6% | 39 | 67 |
Long-term rental The property presents a strong opportunity for a long-term rental investment, with a gross yield of 10.6% indicating solid cash flow potential. Given the significant gap of 48.1% against fair value, investors can secure better returns compared to the typical market offerings. Short-term vacation rental With the Algarve's popularity for tourism, this property could excel as a short-term vacation rental, capturing high demand from travelers all year round. The substantial gap to fair value also signals potential for appreciation in rental income as the area continues to attract visitors. Buy-and-hold This property is positioned favorably for a buy-and-hold strategy, given its subvalorizada status and the likelihood of property appreciation over time. The healthy yield combined with a solid neighborhood score of 64/100 further supports the investment thesis, making it a compelling choice for long-term asset growth.
Economic Vulnerability The property may face financial instability due to a low economic stability score of 55/100, suggesting potential challenges in sustaining 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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