Detached house in Pechão, Olhão
Detached house in Pechão, Olhão — image 2Detached house in Pechão, Olhão — image 3Detached house in Pechão, Olhão — image 4Detached house in Pechão, Olhão — image 5
Grade B+villabudget

Detached house in Pechão, Olhão

Olhão · Eastern Algarve ·

€240,000

Asking Price (EUR)

3.4%

True Net Yield (Owner, all-in)

2.4%

True Net Yield (Managed, all-in)

5.2%

True Gross Yield

38%

Occupancy

Projections — conservative (data maturing)

Our Airbnb calendar dataset started 2.1 months ago and is currently at 17% maturity. Yields shown apply a conservative calibration (realised-ADR factor 0.75, occupancy cap 67%) that auto-fades to full fidelity by April 2027.

Projected Gross Revenue: €22,332/yr
Average Daily Rate: €162
-34.0% vs area baselineImage quality 2/10 (-15%), Portuguese-traditional style (+5%), No pool (-12%), Budget finish (-12%)
Payback Period: 13.4 years
5-yr Capital Value: €315,356
10-yr Capital Value: €383,679
Brixfox Score: 65.2 / 100
Comparable Properties: 19
Data Confidence: 74%
Search Radius: 6 km

True Investment Cost

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

€427,067

+77.9% over asking

Asking price€240,000
IMT — Property transfer tax (investment schedule)€7,797
IS — Stamp duty (0.8%)€1,920
Notary (escritura)€1,000
Property registry€250
Legal fees (~1.5%)€3,600
Total acquisition costs€14,567
Renovation (est. €900/m² × 167 m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		€150,300
(€116,900–€183,700)
Furnishing & STR launch (3bd × €2500 base, budget tier)
Furniture, appliances, electronics, linens, AL licence setup, launch photography.		€22,200
All-in investment (incl. renovation & furnishing)€427,067

Gross yield (asking price)

9.3%

True gross yield (all-in)

5.2%

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
Building: 167 m²
Land: 35800 m²
Style: portuguese-traditional
Condition: needs-renovation
Energy Certificate: Exempt

AL Licence Status Unconfirmed

AL licence status unconfirmed — verify before purchase

Design Features

historic structuretraditional chimney

Score Breakdown

ROI
19.24
Visual Appeal
3.4
Ownership Security
13
Location
7.8
Land & Space
12
Rental Demand
3.77
Payback Speed
3
STR Suitability
3

Description

Magnificent property in the heart of the Barrocal Algarve. With a construction area of 167 m2, it consists of a house, several small buildings and an old windmill on a plot of land with a total area of 3.6 hectare. Just 14 km from Faro international airport and 8 km from the sea. Known as one of the first fishing to

Location

📍 37.0584°N, 7.8716°W

· Olhão, Algarve, Portugal

View on Sortami →Also on Idealista.pt
Idealista.pt
Olhão / Eastern Algarve

Detached house in Pechão, Olhão

Inventory
3 Beds
Bathrooms
0 Baths
Built Area
167 m²
Land Plot
35800 m²
Tenure
Freehold
Yield Curve Status

Grade B+ investment — short-term rental yields 6.3% net return annually.

Go to Source via Idealista.pt

The Investment

Brixfox Score65
GradeB+
Brixfox Intelligence
65B+Strong
Score Breakdown
ROI & Yield72%
Capital Growth68%
Risk Profile67%
Market Demand65%

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
+10.0%
Per Year (5yr avg)
Annualized projected property value change based on historical area appreciation rates (5-year average).
Capital Growth
+3.8%
+$45K in 5yr (+19%)
Estimated monthly net income after deducting management fees, operating costs, and taxes.
ROI Nett Rental Income
6.3%
$1,361/mo
Estimated time for the total investment value (equity + accumulated rent) to double.
100% Profit
10 yr
Combined
Number of years to fully recoup the initial purchase price using only net rental income.
Payback
16.0 yr
Rental only

Property details

Energy: Exempt
Condition: needs-renovation

Description

Magnificent property in the heart of the Barrocal Algarve. With a construction area of 167 m2, it consists of a house, several small buildings and an old windmill on a plot of land with a total area of 3.6 hectare. Just 14 km from Faro international airport and 8 km from the sea. Known as one of the first fishing to

Income Breakdown

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Nightly Rate (ADR)
$235/night
50% ($108)Brixfox estimate($235/night)200% ($432)
Occupancy
38%
10%Brixfox estimate(38%)100%

Short-Term Rental

Yearly income
$16,332
Airbnb data$235/night · 38% occupancy
Rental income
$235/night · 38% occ.
$32,286
Running costs (20%)
Utilities, cleaning, maintenance
-$6,457
Income tax (10%)
Indonesian rental income tax
-$9,040
Property tax
Annual property tax
-$457
Net income
6.3% ROI
$16,332

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$260,870
IMT (transfer tax, investment schedule)$8,475
Imposto de Selo (stamp duty)$2,087
Notary & registration$1,359
Legal / due diligence$3,913
Total acquisition costs$15,834
Renovation (~$978/m²)
Substantial renovation — full bathrooms + kitchen, rewiring, plumbing, finishes.		$163,370
($127,065–$199,674)
Furnishing & STR launch
3bd × $2,717 base + appliances, electronics, outdoor, licence, photography, linens.		$21,957
All-in investment$462,029

Gross yield (asking)

12.4%

True gross yield (all-in)

7.0%

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.

$1.7M$1.3M$859K$429K$0Yr 0Yr 5Yr 10Yr 15Yr 20Yr 25Yr 30Paid back2x ReturnToday: $240K
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 14: rental income alone has repaid the full purchase price.
2x return
Year 9: total gains (capital + rental) have doubled your initial investment.
Year 5
Capital Value
$292K
+22%
Rental Income
+$80K
Total Position
$372K
+55%
9.1%/yr
Year 10
Capital Value
$355K
+48%
Rental Income
+$172K
Total Position
$528K
+120%
8.2%/yr
Year 20
Capital Value
$526K
+119%
Rental Income
+$404K
Total Position
$930K
+287%
7.0%/yr
Year 30
Capital Value
$778K
+224%
Rental Income
+$715K
Total Position
$1.5M
+522%
6.3%/yr

Location

Olhão

Eastern Algarve, Approximate area

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Villa Scorecard

Location
Average
Emerging or secondary location
Rental Yield
Good
6.3% annual return
Occupancy
Weak
38% average occupancy
Nightly Rate
Strong
$216 per night
Visual Appeal
Weak
3/10 instagrammability
Size & Space
Strong
35800 m² land area
Zoning
Average
STR zoning not confirmed
Tenure
Strong
Freehold ownership

Top Highlights

Premium nightly rate of $216 — positioned in the top tier
Generous 35800 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
Occupancy at 38% — factor in seasonal gaps

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

Risks & What-If

What if occupancy changes?

Owner Managed scenario

30% occ.
6.7%
$1,462/mo
40% occ.
9.0%
$1,962/mo
38% occ.
8.5%
$1,845/mo
current
48% occ.
10.8%
$2,346/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.