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.
3-bedroom, 3-bathroom villa of 130 m², built in 1995, energy rating D. Located on rua Serpa Pinto, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The property features a spacious rooftop terrace, perfect for sunbathing and enjoying panoramic views, enhancing the outdoor living experience typical of Algarve properties.
The valuation. The asking price of €580,000 is €46,256 (8.7%) above the fair value of €533,744, indicating that the property is priced fairly. This suggests a reasonable entry point given the property’s appealing condition and location within Olhão.
Fair value modelled at €533,744 from 6 comparable sales in the area. Asking €580,000 sits €46,256 (8.7%) above — overpriced versus fair value.
Asking €580,000 versus the rua Serpa Pinto area baseline of €482,773 (€3,714/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €482,773, adjusted for condition and micro-location, gives a modelled fair value of €533,744 (€4,106/m²), a €46,256 (8.7%) gap versus the €580,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Serpa Pinto | Subject | €580,000 | €4,462 | — | 73 | 64 |
| rua Serpa Pinto | Active | €580,000 | €4,028 | 9.7% | 73 | 69 |
| rua Serpa Pinto | Active | €580,000 | €4,028 | 9.7% | 72 | 67 |
| rua Serpa Pinto, 17 | Active | €620,000 | €3,131 | 29.8% | 70 | 62 |
| Olhão · 3a73a5 | Active | €890,000 | €4,495 | 0.7% | 74 | 64 |
| Median comp | €600,000 | €4,028 | 9.7% | 73 | 66 |
Short-term vacation rental The 3-bed villa in Olhão presents a fair investment opportunity, though it yields only 2.2%, which is lower than the typical target for vacation rentals in the Algarve. Given the neighborhood's tourist-driven economy, this property may generate steady short-term rental demand, but the 8.7% gap from fair value suggests there is limited room for price appreciation in the near future. Buy-and-hold Investing in this villa aligns with a buy-and-hold strategy due to its reasonable condition score of 76/100, indicating it can attract stable tenants with some minor improvements. However, the 8.7% gap from fair value suggests that while it can remain a valuable asset, significant long-term capital gains may be limited. Long-term rental For long-term rental purposes, the villa offers a sustainable option in a neighborhood scoring 64/100, which reflects moderate tenant quality and amenity access. The 2.2% gross yield is not particularly competitive, and the fair market status indicates that rental income potential might not significantly exceed appreciation expectations over time.
Tenant turnover risk High tenant turnover is a concern, indicated by a Tenant stability score of 60/100, which can lead to increased vacancy periods and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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