House in Pechão, Olhão
House in Pechão, Olhão — image 2House in Pechão, Olhão — image 3House in Pechão, Olhão — image 4House in Pechão, Olhão — image 5
Grade Bvillamid-range

House in Pechão, Olhão

Olhão · Eastern Algarve ·

€747,000

Asking Price (EUR)

2.3%

True Net Yield (Owner, all-in)

1.6%

True Net Yield (Managed, all-in)

3.6%

True Gross Yield

24%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 1.7 months ago and is currently at 14% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.74, occupancy cap 66%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €30,694/yr
Average Daily Rate: €344
+22.0% vs area baselineModern/contemporary style (+12%), Has pool (0%), Has view (+10%)
Payback Period: 30.0 years
5-yr Capital Value: €981,547
10-yr Capital Value: €1.2M
Brixfox Score: 62.8 / 100
Comparable Properties: 22
Data Confidence: 75%
Search Radius: 6 km

True Investment Cost

Portuguese transfer tax (IMT) + stamp duty (IS) + notary + registration + legal + renovation + full furnishing & STR launch setup.

€862,661

+15.5% over asking

Asking price€747,000
IMT — Property transfer tax (investment schedule)€44,820
IS — Stamp duty (0.8%)€5,976
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€11,205
Total acquisition costs€63,251
Renovation (est. €55/m² × 322 m²)
Light touch-ups — paint, fixtures, deep clean.		€17,710
(€9,660–€25,760)
Furnishing & STR launch (3bd × €4500 base, mid-range tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€34,700
All-in investment (incl. renovation & furnishing)€862,661

Gross yield (asking price)

4.1%

True gross yield (all-in)

3.6%

Estimates use Portugal's investment IMT schedule (non-permanent residence). Actual notary & legal vary; budget +€500–1,000 for surveyor, due-diligence and bank-mortgage fees if financing. Renovation cost is a heuristic on property condition × m² — verify with a site visit. Furnishing uses finish-level-tiered rates covering beds, living, kitchen, electronics, AL licence, linens & professional photography. Working capital (2-3 months operating buffer) not included.

Bedrooms: 3
Bathrooms: 3
Building: 322 m²
Land: 1220 m²
Style: contemporary
Condition: good
Year Built: 1995
Energy Certificate: C
Private Pool
View

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

pool access from living areaarched doorwaysdecorative chandelier

Score Breakdown

ROI
11.74
Visual Appeal
12.8
Ownership Security
13
Location
7.8
Land & Space
12
Rental Demand
2.44
Payback Speed
0
STR Suitability
3

Description

This charming detached villa, which combines authentic Algarve character with modern upgrades, is located in the traditional village of Pechão, only five minutes from Olhão, fifteen minutes from Faro International Airport, and twenty minutes from the beautiful beaches of the Ria Formosa Natural Park. The main villa w

Location

📍 37.0590°N, 7.8833°W

· Olhão, Algarve, Portugal

View on Ideal Homes Portugal →Also on Idealista.pt
Idealista.pt
Olhão / Eastern Algarve

House in Pechão, Olhão

Inventory
3 Beds
Bathrooms
3 Baths
Built Area
322 m²
Land Plot
1220 m²
Tenure
Freehold
Yield Curve Status

Grade B investment — short-term rental yields 2.7% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score63
GradeB
Brixfox Intelligence
63BStrong
Score Breakdown
ROI & Yield69%
Capital Growth66%
Risk Profile65%
Market Demand63%

The Brixfox Score is our proprietary AI-powered rating that evaluates rental ROI, capital appreciation potential, risk factors, and local market dynamics to give you a single investment quality metric.

Pro members get full score breakdown with AI recommendations
Average annual ROI over 5 years, combining both rental income and property value growth.
Total
+6.5%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+3.8%
+$140K in 5yr (+19%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
2.7%
$1,831/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
14 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
36.9 yr
Rental only

Property details

Year built: 1995
Energy: C
Condition: good

Description

This charming detached villa, which combines authentic Algarve character with modern upgrades, is located in the traditional village of Pechão, only five minutes from Olhão, fifteen minutes from Faro International Airport, and twenty minutes from the beautiful beaches of the Ria Formosa Natural Park. The main villa w

Income Breakdown

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Nightly Rate (ADR)
$504/night
50% ($232)Brixfox estimate($504/night)200% ($928)
Occupancy
24%
10%Brixfox estimate(24%)100%

Short-Term Rental

Yearly income
$21,975
Airbnb data$504/night · 24% occupancy
Rental income
$504/night · 24% occ.
$44,991
Running costs (20%)
Utilities, cleaning, maintenance
-$8,998
Income tax (10%)
Indonesian rental income tax
-$12,598
Property tax
Annual property tax
-$1,421
Net income
2.7% ROI
$21,975

Long-Term Rental

No long-term rental data available

Not enough comparable rentals in this area

True all-in investment

What the headline asking price actually costs once mandatory taxes, fees, renovation, and furnishing are added. Yields rebased onto this number — closer to what you'll really earn against what you'll really pay.

Asking price$811,957
IMT (transfer tax, investment schedule)$48,717
Imposto de Selo (stamp duty)$6,496
Notary & registration$1,359
Legal / due diligence$12,179
Total acquisition costs$68,751
Renovation (~$60/m²)
Light touch-ups — paint, fixtures, deep clean.		$19,250
($10,500–$28,000)
Furnishing & STR launch
3bd × $4,891 base + appliances, electronics, outdoor, licence, photography, linens.		$35,543
All-in investment$935,501

Gross yield (asking)

5.5%

True gross yield (all-in)

4.8%

Estimates use Portugal's standard transfer tax + typical legal/notary defaults. Verify with local counsel before committing — actual fees vary by deal structure.

Growth & Exit Strategy

How your investment grows over time

Freehold — 4%/yr appreciation in Olhão.

$3.9M$2.9M$1.9M$973K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $747K
Capital appreciation
Property value growing at +4%/yr based on Olhão market trends.
Rental income
Cumulative net rental earnings collected over time, growing with annual revenue increases.
Total return
Capital value + rental income. Your actual total position if you sold and kept all rent.
Paid back
Year 26: rental income alone has repaid the full purchase price.
2x return
Year 13: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$909K
+22%
Rental Income
+$107K
Total Position
$1.0M
+36%
6.3%/yr
Year 10
Capital Value
$1.1M
+48%
Rental Income
+$232K
Total Position
$1.3M
+79%
6.0%/yr
Year 20
Capital Value
$1.6M
+119%
Rental Income
+$543K
Total Position
$2.2M
+192%
5.5%/yr
Year 30
Capital Value
$2.4M
+224%
Rental Income
+$962K
Total Position
$3.4M
+353%
5.2%/yr

Location

Olhão

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Weak
2.7% annual return
Occupancy
Weak
24% average occupancy
Nightly Rate
Strong
$464 per night
Visual Appeal
Good
7/10 instagrammability
Size & Space
Strong
1220 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $464 — positioned in the top tier
Generous 1220 m² land — room for expansion or amenities
Freehold ownership — maximum long-term security

Watch Out

Secondary location — rental demand may be lower than premium areas
Yield of 2.7% is below the market average — model your cashflow carefully

Consider carefully. Returns are below market average for this price point.

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
4.6%
$3,102/mo
40% occ.
6.2%
$4,175/mo
24% occ.
3.7%
$2,506/mo
current
34% occ.
5.3%
$3,580/mo

Data Sources & Methodology

ROI calculations use verified Brixfox Intelligence rental data from a 12-month trailing window. Opex: 20% owner-managed, 45% fully-managed. Includes 10% Indonesian rental tax (PPh) and annual property tax (PBB). Market factors in Portugal may impact actual yields.