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.
2-bedroom, 1-bathroom house of 82 m², built in 1920, energy rating D. Located on rua de São Sebastião, Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The property boasts a glass-covered terrace that has been recently remodeled, providing an inviting outdoor dining space year-round, and is located in the vibrant historic Barreta neighborhood. Revenue History: The property is currently utilized as local accommodation, with a revenue history available for consultation.
The valuation. The asking price of €398,500 sits below the fair value of €425,331, indicating a difference of €26,831 (6.3%). Verdict: fair. Buy-to-flip angle. A resale strategy can leverage the property’s high-quality renovation, potentially appealing to buyers seeking modern amenities in a tourist-heavy area. Buy-to-let angle. With an estimated rental income of €1,029/month, the gross yield stands at 3.1%, benefiting from the region's demand for vacation rentals and long-term tenancies.
Fair value modelled at €425,331 from 6 comparable sales in the area. Asking €398,500 sits €26,831 (6.3%) below — the upside to fair value.
Asking €398,500 versus the rua de São Sebastião area baseline of €388,981 (€4,744/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 €388,981, adjusted for condition and micro-location, gives a modelled fair value of €425,331 (€5,187/m²), a €26,831 (6.3%) gap versus the €398,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de São Sebastião | Subject | €398,500 | €4,860 | — | 68 | 72 |
| estrada de Quelfes | Active | €320,000 | €5,333 | 9.7% | 72 | 63 |
| Olhão · 6a942f | Active | €280,000 | €5,091 | 4.8% | 70 | 58 |
| Olhão · 6ebb49 | Active | €690,000 | €4,600 | 5.3% | 71 | 63 |
| Olhão · fe6384 | Active | €370,000 | €5,692 | 17.1% | 78 | 66 |
| Median comp | €345,000 | €5,212 | 7.2% | 72 | 63 |
Short-term vacation rental The property in Olhão, rated at 72/100 for its neighborhood, taps into the highly touristic Algarve region, making it suitable for short-term vacation rentals. However, with a gross yield of only 3.1%, the property is fairly valued at €398,500 compared to the fair value of €425,331. Buy-and-hold With a fair valuation and a solid condition rating of 76/100, this property positions well for a buy-and-hold strategy in the tourist-heavy Algarve area. Nevertheless, the gross yield of 3.1% suggests potential investors should be cautious and recognize that the property is optimally priced without suggesting an undervaluation. Long-term rental Although the property holds potential for long-term rental in the economically vibrant Olhão area, the current yield of 3.1% indicates limited immediate return on investment. Thus, while it remains a suitable option for tenants, the property’s pricing reflects its fair market standing without suggesting a better deal.
Economic Vulnerability The economic stability score of 65/100 suggests potential susceptibility to market fluctuations that could impact rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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