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 house of 100 m², built in 1980, energy rating D. Located on rua Nossa Senhora do Carmo, Moncarapacho e Fuseta parish, Olhão municipality, Faro district. Noteworthy Features: This property boasts a terrace and garden, enhancing outdoor living space and providing a tranquil environment in the picturesque Ria Formosa area.
The valuation. The asking price of €315,000 is notably below the fair value of €570,247, representing a compelling discount of €255,247 or 44.8%. The property is clearly underpriced given its potential value.
Fair value modelled at €570,247 from 6 comparable sales in the area. Asking €315,000 sits €255,247 (44.8%) below — the upside to fair value.
Asking €315,000 versus the rua Nossa Senhora do Carmo area baseline of €514,018 (€5,140/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 €514,018, adjusted for condition and micro-location, gives a modelled fair value of €570,247 (€5,702/m²), a €255,247 (44.8%) gap versus the €315,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Nossa Senhora do Carmo | Subject | €315,000 | €3,150 | — | 70 | 60 |
| Moncarapacho e Fuseta · dbd46a | Active | €420,000 | €2,692 | 14.5% | 65 | 67 |
| Moncarapacho e Fuseta · b45349 | Active | €475,000 | €6,985 | 121.8% | 73 | 61 |
| Moncarapacho e Fuseta · dbd469 | Active | €495,000 | €4,420 | 40.3% | 58 | 55 |
| rua Gonçalo Velho | Active | €495,000 | €9,519 | 202.2% | 76 | 70 |
| Median comp | €485,000 | €5,703 | 81.0% | 69 | 64 |
Long-term rental This property offers a promising long-term rental yield of 4.6%, which is attractive given the current market dynamics. With a fair value considerably higher at €570,247, the property is subvalued by nearly 45%, making it an excellent acquisition for consistent rental income. Short-term vacation rental The location in the Algarve, known for its tourist appeal, enhances the potential for a lucrative short-term vacation rental. The notable 44.8% gap from fair value indicates a strong positioning in the market that can drive compelling returns from short-term tenants. Buy-and-hold With a favorable gap against fair value, this property can be a strategic buy-and-hold investment, capitalizing on increasing property values over time in a tourist-friendly area. Its solid condition score of 67/100 further suggests minimal immediate refurbishment is needed, making it a low-risk entry point for capital appreciation. Not ideal for luxury market The current listing does not position this property effectively for luxury market investments, as its value does not align with premium pricing expectations. The neighborhood’s economic context and amenities indicate a more modest appeal rather than a high-end luxury market. Not ideal for student housing Given the rural setting and limited schooling options in the surrounding area, this house is not suitable for student housing investments. The local economic focus on tourism and agriculture also suggests limited demand from the student demographic. Not ideal for value-add renovation While the property is in decent condition, its current valuation does not support a strong value-add renovation strategy. The condition score of 67/100 implies little room for profitable upgrades, which diminishes the potential for significant returns through improvements.
Potential tenant turnover With an economic stability score of 55 and a tenant stability score of 60, there's a risk of higher tenant turnover, which could lead to increased vacancy rates and costs associated with re-leasing the property.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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