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, 3-bathroom house of 198 m², built in 1880, energy rating D. Located Olhão parish, Olhão municipality, Faro district. Noteworthy Features: This historic property features original wooden doors and decorative paintings, with a breathtaking panoramic terrace offering expansive views over Olhão and the Ria Formosa, enhancing its investment appeal.
The valuation. The asking price of €890,000 is above the fair value of €812,934, indicating a premium of €77,066 (9.5%). Given the current market metrics, this property is deemed to be priced fairly.
Fair value modelled at €812,934 from 6 comparable sales in the area. Asking €890,000 sits €77,066 (9.5%) above — overpriced versus fair value.
Asking €890,000 versus the Olhão, Olhão, Faro area baseline of €752,452 (€3,800/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 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 €752,452, adjusted for condition and micro-location, gives a modelled fair value of €812,934 (€4,106/m²), a €77,066 (9.5%) gap versus the €890,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · 3a73a5 | Subject | €890,000 | €4,495 | — | 74 | 64 |
| rua das Lavadeiras | Active | €410,000 | €4,184 | 6.9% | 73 | 73 |
| rua das Lavadeiras | Active | €470,000 | €4,796 | 6.7% | 76 | 59 |
| rua Serpa Pinto | Active | €580,000 | €4,028 | 10.4% | 73 | 69 |
| rua Serpa Pinto | Active | €580,000 | €4,028 | 10.4% | 72 | 67 |
| Median comp | €525,000 | €4,106 | 8.7% | 73 | 68 |
Long-term rental The property at €890,000 is fairly valued, with a moderate gross yield of 2.4%. Given the neighbourhood's tenant quality and amenities, it may attract stable long-term tenants, but the yield does not provide a compelling investment case. Short-term vacation rental While the typical Algarve tourist profile suggests potential for short-term vacation rentals, the property's fair valuation limits the profitability of this strategy. Seasonality impacts could further strain returns, making this an uncertain option despite the location's tourist appeal. Buy-and-hold As the property is valued at €890,000, which aligns closely with its fair value, the buy-and-hold strategy may offer limited upside. The decent condition score of 77/100 provides assurance for maintenance, but potential appreciation may be constrained by the current pricing level. Not ideal for: Student housing, Luxury market The property does not cater effectively to the student housing market due to its higher price point and lower yield, limiting its attractiveness to budget-conscious student renters. Additionally, with the current valuation, it does not meet the criteria for the luxury market, where investment typically requires a distinct value proposition.
Economic and Tenant Instability The property has a moderate economic stability score of 60/100 and a low tenant stability score of 55/100, indicating potential challenges in attracting and retaining long-term tenants due to economic factors.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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