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 house of 106 m², built in 2000, energy rating C. Located on rua das Garças, Quelfes parish, Olhão municipality, Faro district. Noteworthy Features: This property boasts two spacious terraces with stunning sea views and a charming backyard ideal for outdoor entertaining, all in close proximity to Ria Formosa Natural Park.
The valuation. The asking price of €369,000 sits significantly below the fair value of €538,216, resulting in a difference of €169,216 or 31.4%. This property is clearly underpriced in the current market. Buy-to-flip angle. Given its current condition score of 70/100, a strategic renovation could enhance its appeal and elevate the asking price, enabling a profitable resale within the short-term flip market. Buy-to-let angle. With an estimated gross yield of 3.7% at approximately €1,138 per month, the property offers a stable rental income, making it suitable for long-term hold or short-term vacation rental strategies, especially in a tourist-favored area like Quelfes.
Fair value modelled at €538,216 from 6 comparable sales in the area. Asking €369,000 sits €169,216 (31.4%) below — the upside to fair value.
Asking €369,000 versus the rua das Garças area baseline of €482,070 (€4,548/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 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 €482,070, adjusted for condition and micro-location, gives a modelled fair value of €538,216 (€5,078/m²), a €169,216 (31.4%) gap versus the €369,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua das Garças | Subject | €369,000 | €3,481 | — | 72 | 61 |
| Olhão · 0c04ff | Active | €278,000 | €3,915 | 12.5% | 70 | 63 |
| rua Doutor Ataíde Oliveira | Active | €395,000 | €5,064 | 45.5% | 68 | 68 |
| Olhão · 6a942f | Active | €280,000 | €5,091 | 46.2% | 70 | 58 |
| Olhão · f46d43 | Active | €580,000 | €7,073 | 103.2% | 74 | 62 |
| Median comp | €337,500 | €5,078 | 45.9% | 70 | 63 |
Short-term vacation rental This 2-bed house in Quelfes, Olhão, shows a significant gap of 31.4% below its fair market value of €538,216, suggesting strong potential for short-term vacation rental returns. With a gross yield of 3.7%, the property can benefit from the Algarve's vibrant tourism market, appealing to holidaymakers seeking comfort and affordability. Long-term rental Investing in this property for long-term rental aligns well with the growing demand for quality housing in the Olhão region, supported by its overall neighborhood ranking of 61/100. The fair value positioning indicates stability and potential for rental income bolstered by the safety and amenities of the Algarve area. Buy-and-hold As a buy-and-hold investment, this house represents a strategic opportunity, considering its valuation is 31.4% below fair value. The favorable rental market dynamics compounded by the region's tourism can lead to substantial appreciation over time, making it an attractive long-term asset in one's portfolio.
Economic vulnerability The economic stability score of 50/100 indicates a moderate risk of economic downturns impacting rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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