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.
5-bedroom, 2-bathroom house of 265 m², energy rating E. Located Quelfes parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts a rooftop terrace offering panoramic city views, a rare feature for downtown Olhão residences, enhancing its appeal for outdoor entertaining and relaxation.
The valuation. The asking price of €465,000 is significantly below the fair value of €608,532, indicating this property is underpriced by €143,532 (23.6%). This presents an opportunity for a lucrative investment. Buy-to-flip angle. A buy-to-flip strategy would capitalize on the current undervaluation, aiming to renovate the property and resell it at a price closer to fair value, potentially yielding substantial profits. Buy-to-let angle. With an estimated gross yield of 7.9%, renting the property could generate approximately €3,061 per month, making it a favorable option for long-term income through various rental strategies in a tourist-friendly area.
Fair value modelled at €608,532 from 6 comparable sales in the area. Asking €465,000 sits €143,532 (23.6%) below — the upside to fair value.
Asking €465,000 versus the Quelfes, Olhão, Faro area baseline of €520,243 (€1,963/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 61/100 is below the parish average, reducing 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 €520,243, adjusted for condition and micro-location, gives a modelled fair value of €608,532 (€2,296/m²), a €143,532 (23.6%) gap versus the €465,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Quelfes · 07f8c4 | Subject | €465,000 | €1,755 | — | 55 | 71 |
| Quelfes · 76b462 | Active | €650,000 | €2,490 | 41.9% | 48 | 61 |
| Olhão · 5b85a3 | Active | €740,000 | €2,102 | 19.8% | 68 | 73 |
| Olhão · c83a21 | Active | €549,000 | €2,920 | 66.4% | 76 | 63 |
| Quelfes · 51b4a0 | Active | €740,000 | €2,102 | 19.8% | 70 | 64 |
| Median comp | €695,000 | €2,296 | 30.8% | 69 | 64 |
Short-term vacation rental The property's fair value of €608,532 presents a significant opportunity, as it is currently listed at €465,000, resulting in a 23.6% gap. Given the gross yield of 7.9%, this investment strategy can capitalize on Algarve's robust tourist appeal and high rental demand. Long-term rental With a fair value surpassing the listing price by 23.6%, acquiring this property for long-term rental aligns well with the market conditions in Quelfes, Olhão. The economic stability offered by steady tourism ensures a reliable tenant base, enhancing the potential returns. Buy-and-hold Investing in this 5-bed house at €465,000 provides an attractive entry point well below its fair value of €608,532, suggesting strong appreciation potential. Its favorable yield of 7.9% complements a buy-and-hold strategy focused on benefitting from both rental income and long-term capital gains.
Economic Vulnerability The economic stability score of 65/100 indicates a moderate risk that fluctuations in the local economy could impact 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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