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, 5-bathroom villa of 250 m², built in 2005, energy rating B. Located Pechão parish, Olhão municipality, Faro district. This villa features a covered outdoor barbecue area and a highly versatile basement space, suitable for conversion into a studio apartment, offering exceptional flexibility for various uses.
The valuation. The asking price of €875,000 is significantly below the fair value of €1,494,853, representing a discount of €619,853 (41.5%). This property is convincingly underpriced based on its market potential.
Fair value modelled at €1,494,853 from 6 comparable sales in the area. Asking €875,000 sits €619,853 (41.5%) below — the upside to fair value.
Asking €875,000 versus the Pechão, Olhão, Faro area baseline of €1,262,030 (€5,048/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €1,262,030, adjusted for condition and micro-location, gives a modelled fair value of €1,494,853 (€5,979/m²), a €619,853 (41.5%) gap versus the €875,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Pechão · 76b47b | Subject | €875,000 | €3,500 | — | 82 | 64 |
| Conceição e Estoi · 4d4664 | Active | €1,850,000 | €7,400 | 111.4% | — | 58 |
| Conceição e Estoi · 467e2f | Active | €950,000 | €4,130 | 18.0% | 76 | 55 |
| autoestrada CM | Active | €1,850,000 | €7,400 | 111.4% | 75 | 70 |
| autoestrada CM | Active | €1,850,000 | €7,400 | 111.4% | 78 | 67 |
| Median comp | €1,850,000 | €7,400 | 111.4% | 76 | 63 |
Long-term rental The 4-bed villa in Pechão presents an attractive opportunity for long-term rental, with a fair value of €1,494,853 suggesting a significant upside potential compared to its listing price of €875,000. With a gross yield of 4.5%, the property offers steady income stability while the region benefits from the ongoing demand for residential rentals. Short-term vacation rental Positioned in a location that capitalizes on the Algarve's tourism, this villa is well-suited for short-term vacation rentals, potentially increasing revenue streams given the gap to its fair market value. The combination of a favorable listing price and the villa's appeal can lead to strong occupancy rates during peak tourism seasons, maximizing rental income potential. Buy-and-hold Investing in this villa as a buy-and-hold strategy makes sense, considering its fair value indicates a substantial potential for appreciation over time. The 41.5% gap to fair value signals that the property could appreciate significantly, allowing for long-term capital gains while benefiting from rental income in the interim. Not ideal for student housing The villa's characteristics and location do not align with the typical demands of the student housing market. Although the overall tenant quality in the area is reasonable, the villa's size and profile cater more to families and tourists than to students looking for shared accommodations.
Economic Vulnerability The property is at risk due to low economic stability with a score of 55/100, indicating potential challenges in market conditions that could affect tenant demand. Tenant Instability With a tenant stability score of 60/100, there may be an increased likelihood of tenant turnover, impacting rental income and occupancy rates.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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