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.
3-bedroom, 2-bathroom house of 120 m², energy rating E. Located Pechão parish, Olhão municipality, Faro district. Noteworthy Features: The property includes a versatile yard with a barbecue area and multiple outbuildings, providing excellent opportunities for outdoor leisure activities and gardening, along with a panoramic sea view.
The valuation. The asking price of €850,000 sits €304,231 above the fair value of €545,769, representing a 55.7% premium. This property is clearly overpriced relative to the market's realistic expectations. Buy-to-flip angle. The buy-to-flip strategy here would require significant investment to bridge the valuation gap, aiming to enhance its appeal for resale. With renovations, a profitable markup is anticipated in a revitalized local market. Buy-to-let angle. For a rental income strategy, the estimated gross yield of 3.1% at €2,196 per month offers a modest return. The property's location in a tourism-driven area provides steady demand for both long-term and short-term rental opportunities.
Fair value modelled at €545,769 from 6 comparable sales in the area. Asking €850,000 sits €304,231 (55.7%) above — overpriced versus fair value.
Asking €850,000 versus the Pechão, Olhão, Faro area baseline of €499,427 (€4,162/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 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 €499,427, adjusted for condition and micro-location, gives a modelled fair value of €545,769 (€4,548/m²), a €304,231 (55.7%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · 831352 | Subject | €850,000 | €7,083 | — | 65 | 73 |
| Pechão · 834248 | Active | €850,000 | €3,469 | 51.0% | — | 72 |
| Quelfes · 38b7b3 | Active | €510,000 | €3,750 | 47.1% | 70 | 70 |
| Conceição e Estoi · 1f351d | Active | €799,000 | €6,658 | 6.0% | 78 | 67 |
| Conceição e Estoi · 96c188 | Active | €799,000 | €6,658 | 6.0% | 78 | 53 |
| Median comp | €799,000 | €5,204 | 26.5% | 78 | 69 |
Short-term vacation rental The property, with a listing price of €850,000, is significantly overpriced compared to its fair value of €545,769, representing a 55.7% gap. At a gross yield of only 3.1%, it does not provide a compelling financial incentive for short-term rental investors in a competitive Algarve market. Long-term rental Given the 55.7% price gap, the property is not positioned as a sound long-term rental investment, as its €850,000 asking price far exceeds the fair value of €545,769. The modest gross yield of 3.1% further suggests a lack of rental profitability, which is crucial in a market that increasingly favors affordability. Buy-and-hold While the property may have potential for appreciation over time, its current listing price of €850,000, significantly above the fair value of €545,769, indicates it is overpriced. An unsatisfactory yield of 3.1% suggests that a buy-and-hold strategy would likely not yield attractive returns in the foreseeable future.
Economic Vulnerability The economic stability score of 65/100 indicates potential susceptibility to market fluctuations, which could impact rental income and tenant retention negatively.
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
