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 apartment of 79 m² on the 8th floor, built in 1983, energy rating D. Located Olhão parish, Olhão municipality, Faro district. This apartment features a stunning 25-square-meter terrace, perfect for entertaining while enjoying panoramic views of the Ria Formosa and surrounding mountains.
The valuation. The asking price of €650,000 is significantly above the fair value of €245,446, representing a premium of €404,554 (164.8%). This property is overpriced compared to market standards. Buy-to-flip angle. Reselling this apartment for a profit would require substantial renovations due to its current condition and targeting a market price significantly above €650,000. Quick resale may be challenging with such a high initial investment. Buy-to-let angle. The estimated rental income of €867/month yields a gross return of only 1.6%, which is relatively low for an investment property. Long-term rental strategies may not provide a strong cash flow under current market conditions, given the property's pricing.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · 80019b | Subject | €650,000 | €8,228 | — | — | 63 |
| rua João da Rosa, 6A | Active | €260,000 | €3,939 | 52.1% | 70 | 62 |
| avenida Dom João VI, 167 | Active | €285,000 | €3,239 | 60.6% | 63 | 60 |
| urbanização João de Ourém | Active | €355,000 | €3,008 | 63.4% | 75 | 70 |
| Olhão · 65a817 | Active | €540,000 | €2,813 | 65.8% | 73 | 63 |
| Median comp | €320,000 | €3,124 | 62.0% | 72 | 63 |
Short-term vacation rental The property is overpriced at €650,000 compared to a fair value of €245,446, resulting in a significant gap of 164.8%. With a gross yield of only 1.6%, the short-term rental market is unlikely to provide a sufficient return on investment given the high entry cost. Buy-and-hold Investing in this property for a buy-and-hold strategy is not advisable, as its current price substantially exceeds fair market value by 164.8%. The low yield of 1.6% further diminishes the attractiveness of long-term capital appreciation in this scenario. Long-term rental A long-term rental investment in this apartment appears imprudent, considering it is priced at an inflated €650,000 versus a fair value of €245,446. The insufficient gross yield of 1.6% indicates that the rental income would not effectively cover the high cost of acquisition, making this strategy less viable.
Economic Vulnerability With an economic stability score of 55/100, the property may face risks related to economic downturns, impacting tenant demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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