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 house of 260 m², energy rating E. Located Olhão parish, Olhão municipality, Faro district. Noteworthy features: This property includes a T1 ground floor apartment with direct access to a private rooftop terrace, offering potential for personal use or tourism development.
The valuation. The asking price of €735,000 is significantly above the fair value of €453,113, reflecting an overestimation of €281,887 or 62.2%. This valuation suggests the property is overpriced in the current market. Buy-to-flip angle. A buy-and-flip strategy may not yield significant profits given the current price. The need for modernization indicates higher renovation costs, making a quick resale less appealing. Buy-to-let angle. The estimated gross yield of 4.2%, translating to around €2,573 per month, supports a buy-to-let strategy. However, the mixed neighborhood may present variable rental demand, impacting overall profitability.
Fair value modelled at €453,113 from 6 comparable sales in the area. Asking €735,000 sits €281,887 (62.2%) above — overpriced versus fair value.
Asking €735,000 versus the Olhão, Olhão, Faro area baseline of €529,385 (€2,036/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 44/100 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 €529,385, adjusted for condition and micro-location, gives a modelled fair value of €453,113 (€1,743/m²), a €281,887 (62.2%) gap versus the €735,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · 2cdd9c | Subject | €735,000 | €2,827 | — | 46 | 65 |
| rua de Sant'Ana | Active | €250,000 | €1,603 | 43.3% | — | 75 |
| rua de Sant'Ana | Active | €270,000 | €1,731 | 38.8% | — | 64 |
| Quelfes · 65309f | Active | €537,000 | €2,782 | 1.6% | 58 | 65 |
| Quelfes · 07f8c4 | Active | €465,000 | €1,755 | 37.9% | 55 | 71 |
| Median comp | €367,500 | €1,743 | 38.3% | 57 | 68 |
Short-term vacation rental The property’s gross yield of 4.2% does not justify its listing price of €735,000, especially when the fair value sits at €453,113, creating a significant gap of 62.2%. Given the condition rating of 44/100 and the high price, this investment strategy is unlikely to yield desirable returns in the competitive vacation rental market. Buy-and-hold At €735,000, the property's price significantly exceeds its fair value of €453,113, suggesting that long-term appreciation may not be sufficient to cover the 62.2% gap. The current yield of 4.2% and a neighborhood rating of 65/100 further indicate that holding this property may not be a wise investment decision amidst potential declining conditions. Family rental With a listing price of €735,000 that is considerably above the fair value of €453,113, this property fails to present an attractive option for family rentals, as indicated by a yield of 4.2%. The property’s condition rating of 44/100 raises concerns about ongoing maintenance costs, further complicating its potential as a reliable rental investment.
Economic Vulnerability With an economic stability score of 60/100, there is a significant risk of fluctuating market conditions impacting rental income and property value.
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