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, 3-bathroom apartment of 122 m² on the 3rd floor, built in 2021, energy rating A+. Located Quelfes parish, Olhão municipality, Faro district. This property features a panoramic roof terrace with dual swimming pools and breathtaking 180° views of the Ria Formosa, enhancing the luxurious lifestyle offered by the gated community.
The valuation. The asking price of €725,000 is €186,271 (34.6%) above the fair value of €538,729, indicating that the property is overpriced. This discrepancy suggests potential challenges for investors seeking to capitalize on appreciation.
Fair value modelled at €538,729 from 6 comparable sales in the area. Asking €725,000 sits €186,271 (34.6%) above — overpriced versus fair value.
Asking €725,000 versus the Quelfes, Olhão, Faro area baseline of €438,177 (€3,592/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 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 €438,177, adjusted for condition and micro-location, gives a modelled fair value of €538,729 (€4,416/m²), a €186,271 (34.6%) gap versus the €725,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Quelfes · 096e19 | Subject | €725,000 | €5,943 | — | 85 | 71 |
| Olhão · 3a7135 | Active | €799,000 | €6,549 | 10.2% | 86 | 57 |
| Olhão · 4d4668 | Active | €725,000 | €4,801 | 19.2% | 72 | 73 |
| Olhão · 6a9448 | Active | €630,000 | €5,727 | 3.6% | 80 | 62 |
| avenida Dom João VI | Active | €399,000 | €4,030 | 32.2% | 85 | 63 |
| Median comp | €677,500 | €5,264 | 11.4% | 83 | 63 |
Short-term vacation rental The €725,000 listing price for this apartment significantly exceeds the fair value of €538,729, indicating an overvaluation that may limit profitability in the short-term rental market. With a gross yield of only 2%, the investment may struggle to generate satisfactory returns in a competitive tourism-driven economy. Buy-and-hold Holding this property as a long-term investment may not provide ideal capital appreciation, given the current market value gap of 34.6%. The combination of a low yield and overpriced valuation raises concerns about the long-term viability of this investment strategy. Long-term rental This property, priced at €725,000, may not attract suitable long-term tenants due to its gross yield of just 2%, suggesting insufficient cash flow potential. Consequently, the significant price disparity from the fair value could deter prospective renters and create challenges in maintaining a profitable rental operation.
Economic Volatility Risk The economic stability score of 65/100 suggests potential volatility in the local economy, which may affect long-term tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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