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 apartment of 133 m² on the 4th floor, energy rating B. Located on rua Domingos Xavier Pereira, 3, Olhão parish, Olhão municipality, Faro district. Stunning views of the Ria Formosa and a private terrace ideal for year-round outdoor entertaining enhance the luxurious living experience of this top-floor apartment.
The valuation. The asking price of €500,000 is significantly below the fair value of €614,946, representing an undervaluation of €114,946 (18.7%). This presents a compelling opportunity for investors looking for properties priced attractively. Buy-to-flip angle. For a buy-to-flip strategy, the potential resale value can be maximized through renovations or strategic marketing, targeting buyers attracted by the area's tourist appeal. Given the fair value, there is room for profit upon resale. Buy-to-let angle. The estimated rental income of approximately €1,875 per month translates to a gross yield of 4.5%, making it a strong candidate for a buy-to-let investment, especially with the high tourist demand in the Algarve region.
Fair value modelled at €614,946 from 6 comparable sales in the area. Asking €500,000 sits €114,946 (18.7%) below — the upside to fair value.
Asking €500,000 versus the rua Domingos Xavier Pereira, 3 area baseline of €546,904 (€4,112/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 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 €546,904, adjusted for condition and micro-location, gives a modelled fair value of €614,946 (€4,624/m²), a €114,946 (18.7%) gap versus the €500,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Domingos Xavier Pereira, 3 | Subject | €500,000 | €3,759 | — | 78 | 72 |
| rua Domingos Xavier Pereira | Active | €445,000 | €2,781 | 26.0% | 78 | 67 |
| azinhaga da Patinha | Active | €410,690 | €3,111 | 17.2% | 82 | 68 |
| rua Custódio Domingos Pereira Neto | Active | €430,000 | €4,624 | 23.0% | 78 | 70 |
| Olhão · dbd477 | Active | €755,000 | €5,171 | 37.6% | 77 | 66 |
| Median comp | €437,500 | €3,868 | 2.9% | 78 | 68 |
Short-term vacation rental The property presents a lucrative opportunity for short-term vacation rentals, capitalizing on the high tourist activity in Olhão due to its proximity to the Algarve coast. With a fair value of €614,946 and a gross yield of 4.5%, the potential for attractive returns is evident despite the €500,000 asking price being 18.7% below fair value. Long-term rental Investing in this 3-bed apartment as a long-term rental aligns well with the region's reliance on a tourism-based economy, providing a stable income stream in a neighborhood that scores 72/100 for its environment. The property's competitive pricing at €500,000 suggests a strong potential for rental demand, further supported by its favorable gross yield of 4.5%. Buy-and-hold Acquiring this apartment as a buy-and-hold investment could yield substantial long-term appreciation given its underpriced status compared to its fair value of €614,946. The combination of a gross yield of 4.5% and the property’s solid condition of 81/100 makes it an appealing opportunity for investors looking for future capital growth in a dynamic market.
Potential Revenue Volatility: With an economic stability score of 65/100, there is a risk of fluctuating rental demand, which could affect overall revenue and vacancy rates negatively.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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