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, 1-bathroom house of 58 m², built in 1986. Located Olhão parish, Olhão municipality, Faro district. The property includes an approved architectural project for a roof terrace pool, adding potential for luxury amenities in a prime downtown location near the marina.
The valuation. The asking price of €220,000 is significantly above its fair value of €157,405, representing a disparity of €62,595 (39.8%). This property is indeed overpriced, deterring potential buyers seeking value.
Fair value modelled at €157,405 from 6 comparable sales in the area. Asking €220,000 sits €62,595 (39.8%) above — overpriced versus fair value.
Asking €220,000 versus the Olhão, Olhão, Faro area baseline of €215,732 (€3,720/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 15/100 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 €215,732, adjusted for condition and micro-location, gives a modelled fair value of €157,405 (€2,714/m²), a €62,595 (39.8%) gap versus the €220,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · 15e391 | Subject | €220,000 | €3,793 | — | — | 72 |
| azinhaga da Patinha | Active | €259,900 | €3,938 | 3.8% | 20 | 65 |
| Olhão · 82c6a1 | Active | €700,000 | €1,961 | 48.3% | — | 65 |
| rua da Cerca, 66 | Active | €365,000 | €2,786 | 26.5% | 40 | 61 |
| travessa Doutor Paula Nogueira S / N | Active | €199,000 | €3,491 | 8.0% | 40 | 62 |
| Median comp | €312,450 | €3,139 | 17.3% | 40 | 64 |
Short-term vacation rental Despite the potential for high yields in the Algarve tourist market, this property's listing price of €220,000 significantly exceeds its fair value of €157,405, resulting in a 39.8% gap. Furthermore, its poor condition rating of 15/100 raises concerns about the necessary investment to bring the property up to the standard expected by vacation renters. Long-term rental While the property offers a gross yield of 6%, the €220,000 asking price represents a significant overvaluation compared to its fair value, making it less attractive for long-term tenants seeking affordable housing. Additionally, the 72/100 neighborhood rating does provide some appeal, but the property's high cost coupled with its poor condition compromises long-term investment viability. Buy-and-hold Investing in this property as a buy-and-hold strategy is problematic due to its overvalued price of €220,000 compared to the fair valuation of €157,405. The potential for appreciation in a tourist area like Olhão is undermined by the current price, coupled with the property's very low condition score that would necessitate substantial future investment for decent rental returns.
Economic Vulnerability The property may be at risk due to a moderate economic stability score of 65, indicating potential challenges in the area's economic performance that could impact tenant retention and rental income.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
