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 apartment of 120 m² on the 4th floor, energy rating G. Located on rua do Caminho de Ferro, Olhão parish, Olhão municipality, Faro district. This apartment features a bright balcony that offers panoramic views over Olhão, ensuring both sun exposure and privacy in a central location.
The valuation. The asking price of €295,000 is slightly below the fair value of €305,538, reflecting a difference of €10,538 (3.4%). This positions the property at a fair price point, making it an appealing investment opportunity.
Fair value modelled at €305,538 from 6 comparable sales in the area. Asking €295,000 sits €10,538 (3.4%) below — the upside to fair value.
Asking €295,000 versus the rua do Caminho de Ferro area baseline of €258,596 (€2,155/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 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 €258,596, adjusted for condition and micro-location, gives a modelled fair value of €305,538 (€2,546/m²), a €10,538 (3.4%) gap versus the €295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Caminho de Ferro | Subject | €295,000 | €2,458 | — | 72 | 62 |
| avenida Doutor Bernardino da Silva S / N | Active | €315,000 | €2,692 | 9.5% | 80 | 68 |
| rua Almirante Reis, 156 | Active | €275,000 | €3,313 | 34.8% | 70 | 66 |
| rua General Humberto Delgado, 21 | Active | €240,000 | €2,400 | 2.4% | 74 | 62 |
| Pechão · 19f785 | Active | €180,000 | €1,682 | 31.6% | 64 | 73 |
| Median comp | €257,500 | €2,546 | 3.6% | 72 | 67 |
Short-term vacation rental The 4.1% gross yield suggests a moderate return for short-term vacation rentals, aligning with the demand in Algarve, a favored tourist destination. However, the fair valuation indicates that potential investors should proceed with caution, as the slight gap to fair value signifies limited room for appreciation. Long-term rental With a fair valuation of €305,538, the property demonstrates stability in terms of long-term rental potential, especially given Olhão's appeal as a relatively safe location with basic amenities. Nevertheless, the 4.1% gross yield is not compelling enough to indicate significant investment upside in a competitive rental market. Buy-and-hold Although the fair value is close to the listing price, the moderate condition rating of 75/100 and the neighbourhood score of 62/100 suggest that long-term buy-and-hold strategies may face challenges in value appreciation. Investors may want to consider continuous maintenance and potential neighborhood improvements to support future gains in this market. Not ideal for: Student housing, Luxury market, Industrial investment.
Economic Vulnerability With an economic stability score of 55/100, the property may be subject to fluctuations that could affect tenant demand and rental income. Tenant Instability A tenant stability score of 65/100 indicates that there may be a moderate risk of tenant turnover, which can impact cash flow and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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