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, 2-bathroom house of 165 m², built in 2005, energy rating E. Located Pechão parish, Olhão municipality, Faro district. Noteworthy Features: This property boasts a large outdoor area landscaped with fruit trees, perfect for cultivating an organic garden and enhancing the overall living experience. Additional Advantage: The independent annex offers flexible living options, ideal for rental income or accommodating guests.
The valuation. The asking price of €320,000 sits €57,670 (15.3%) below the fair value of €377,670, indicating the property is subvalued in the current market. This presents a promising opportunity for potential investors.
Fair value modelled at €377,670 from 6 comparable sales in the area. Asking €320,000 sits €57,670 (15.3%) below — the upside to fair value.
Asking €320,000 versus the Pechão, Olhão, Faro area baseline of €301,492 (€1,827/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 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 €301,492, adjusted for condition and micro-location, gives a modelled fair value of €377,670 (€2,289/m²), a €57,670 (15.3%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · f14cde | Subject | €320,000 | €1,939 | — | 60 | 66 |
| urbanização Cerro Azul | Active | €495,000 | €1,375 | 29.1% | — | 70 |
| estrada de São Luís | Active | €426,000 | €2,420 | 24.8% | 55 | 74 |
| rua António Henrique Cabrita, 26 | Active | €425,000 | €2,157 | 11.2% | 80 | 65 |
| via Alameda em Olhão | Active | €230,000 | €2,500 | 28.9% | 58 | 70 |
| Median comp | €425,500 | €2,289 | 18.0% | 58 | 70 |
Short-term vacation rental This property in Pechão offers a promising opportunity for short-term vacation rentals, with a strong gross yield of 4.7%, leveraging the location near the Algarve coast. The fair value of €377,670 presents a significant gap of 15.3%, indicating an attractive investment for capitalizing on seasonal tourism. Family rental The property is well-suited for family rental given its two-bedroom layout and proximity to local amenities, making it appealing for long-term tenants. Despite the condition rating of 55/100 and neighborhood score of 66/100, the investment aligns with the fair value assessment, ensuring stable cash flow potential. Buy-and-hold Opting for a buy-and-hold strategy is advantageous, as the fair value of €377,670 indicates long-term appreciation potential for this subvalorizada asset. As the housing market remains influenced by seasonal factors, this investment benefits from a stable demand amidst an attractive coastal location.
Economic Vulnerability With an economic stability score of 60/100, the property is exposed to potential downturns in the local economy, which could affect tenant retention and rental income.
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