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, 2-bathroom house of 98 m², built in 1951, energy rating C. Located Olhão parish, Olhão municipality, Faro district. Noteworthy Features: The house boasts a striking traditional azulejo tile facade and a modern spiral staircase, seamlessly blending historical charm with contemporary design elements.
The valuation. The asking price of €3,980,000 significantly exceeds the fair value of €508,322, representing a discrepancy of €3,471,678 (683.0%). This property is considered overpriced in the current market.
Fair value modelled at €686,000 from 5 comparable sales in the area. Asking €3,980,000 sits €3,294,000 (480.2%) above — overpriced versus fair value.
Asking €3,980,000 versus the Olhão, Olhão, Faro area baseline of €638,032 (€6,511/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 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 €638,032, adjusted for condition and micro-location, gives a modelled fair value of €686,000 (€7,000/m²), a €3,294,000 (480.2%) gap versus the €3,980,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Olhão · 0acd3b | Subject | €3,980,000 | €40,612 | — | — | 70 |
| Olhão · f46d43 | Active | €580,000 | €7,073 | 82.6% | 74 | 62 |
| Olhão · cfddf5 | Active | €580,000 | €7,073 | 82.6% | 75 | 68 |
| Olhão · 0c04ff | Active | €278,000 | €3,915 | 90.4% | 70 | 63 |
| rua das Garças | Active | €369,000 | €3,481 | 91.4% | 72 | 61 |
| Median comp | €474,500 | €5,494 | 86.5% | 73 | 63 |
Short-term vacation rental The property is not suitable for short-term vacation rental due to its excessive pricing, with a gap of 683% versus its fair value, making it financially unfeasible. Additionally, with a gross yield of 0%, this strategy lacks the potential for generating income in a tourist-centric market. Buy-and-hold Investing in this property would be a poor decision, given its valuation is 683% above fair value, indicating a significant overspend for a long-term hold. Furthermore, the lack of rental yield suggests that holding this asset does not offer the potential for appreciating returns to justify the investment. Family rental This property fails to be a viable family rental opportunity as it is overpriced at €3,980,000, compared to a fair value of €508,322, leading to an unsustainable investment risk. With a low yield of 0% and a neighborhood score of 70/100, the overall potential for family-oriented tenants is diminished, reinforcing that the price is well beyond market expectations.
[Tenant turnover risk] With a tenant stability score of 70/100, there is a moderate risk of tenant turnover, potentially impacting rental income and increasing vacancy 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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