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.
4-bedroom, 4-bathroom villa of 194 m², energy rating D. Located on rua do Pinheiro, 19, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts a unique lookout point offering panoramic views of the sea and city, along with two independent entrances for flexible living arrangements and investment potential.
The valuation. The asking price of €735,000 is substantially below its fair value of €901,214, representing a difference of €166,214 (18.4%). Verdict: underpriced. Buy-to-flip angle. With a fair value significantly higher, a resale strategy targeting the upscale market could realize substantial profits upon renovations or staging. Buy-to-let angle. A gross yield of 2.7% indicates potential for steady cash flow through long-term rentals at €1,654 per month, especially appealing in a tourist-attractive location like Olhão.
Fair value modelled at €901,214 from 6 comparable sales in the area. Asking €735,000 sits €166,214 (18.4%) below — the upside to fair value.
Asking €735,000 versus the rua do Pinheiro, 19 area baseline of €777,347 (€4,007/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €777,347, adjusted for condition and micro-location, gives a modelled fair value of €901,214 (€4,645/m²), a €166,214 (18.4%) gap versus the €735,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Pinheiro, 19 | Subject | €735,000 | €3,789 | — | 80 | 70 |
| urbanização Cerro Azul | Active | €1,395,000 | €5,602 | 47.9% | 78 | 63 |
| rua das Lavadeiras | Active | €470,000 | €4,796 | 26.6% | 76 | 59 |
| Olhão · 3a73a5 | Active | €890,000 | €4,495 | 18.6% | 74 | 64 |
| rua das Lavadeiras | Active | €410,000 | €4,184 | 10.4% | 73 | 73 |
| Median comp | €680,000 | €4,646 | 22.6% | 75 | 64 |
Short-term vacation rental The 4-bed villa in Olhão presents an attractive opportunity for short-term vacation rentals, particularly given its proximity to the Algarve coast which draws substantial tourist traffic. With a current gross yield of 2.7% and a fair value gap of 18.4%, the property is poised for appreciation as demand for rental accommodations continues to rise in this sought-after region. Long-term rental Investing in long-term rental for this villa is a strategic move considering the current fair value exceeds the listing price by 18.4%, indicating potential for solid returns as the local rental market remains resilient amidst seasonal employment fluctuations. With a neighborhood score of 70/100, tenant quality is promising, enhancing the viability of stable long-term tenancies. Buy-and-hold The buy-and-hold strategy represents a sound investment for the villa, as the property is currently listed at a price significantly lower than its estimated fair value of €901,214, translating to an 18.4% gap indicating potential appreciation. This aligns with the ongoing demand for properties in the Algarve region, making it a favorable option for capital growth over time.
Economic volatility risk With an economic stability score of 60/100, there is a significant risk that economic downturns could lead to decreased property values and rental income.
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