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.
0-bedroom, 1-bathroom apartment of 122 m². Located Portimão parish, Portimão municipality, Faro district. This property features a multifunctional studio space created from a converted garage, enhancing its utility for both living and working needs, while maintaining a modern aesthetic.
The valuation. The asking price of €650,000 is significantly above the fair value of €225,652, representing an overvaluation of €424,348 (65.3%). This indicates that the property is overpriced and may not be a prudent investment choice.
Fair value modelled at €225,652 from the area baseline, adjusted for condition and location. Asking €650,000 sits €424,348 (65.3%) above — overpriced versus fair value.
Asking €650,000 versus the Portimão, Portimão, Faro area baseline of €395,036 (€3,238/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 72 · Materials 75 · Room dimensions 68). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 80/100 (Housing Market 80 · Amenities 80 · Economic 70 · Tenant Quality 90). Strong amenities and housing-market momentum support a premium to baseline.
Portimão, Portimão, Faro
Area baseline €395,036 + condition -€8,959 + location +€25,137 = modelled fair value of €225,652 (€1,850/m²), a €424,348 (65.3%) gap versus the €650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Portimão · 6f40a7 | Subject | €650,000 | €5,328 | — | 72 | 80 |
| Portimão · 0019d9 | Active | €350,000 | €7,447 | 39.8% | 82 | 74 |
| Portimão · 6d5358 | Active | €320,000 | €4,571 | 14.2% | 73 | 72 |
| praceta da Alvorada, 1 | Active | €253,000 | €3,833 | 28.1% | 60 | 75 |
| Alvor · 420065 | Active | €255,000 | €4,322 | 18.9% | 72 | 71 |
| Median comp | €287,500 | €4,447 | 16.5% | 73 | 73 |
Short-term vacation rental The property, with a gross yield of only 2.1%, appears overpriced relative to its fair value, indicating limited profitability for short-term rental operations. The seasonal nature of tourism in Algarve further diminishes the appeal of this investment strategy, as high demand may not be consistent year-round. Long-term rental Given the 65.3% gap from fair value, this property seems overpriced and may yield inadequate returns for long-term leasing commitments. The quality of the neighborhood at 80/100 may attract tenants, but the purchase price significantly outweighs the rental income potential. Buy-and-hold While holding this property for appreciation might seem appealing, the 2.1% gross yield alongside a fair value analysis suggests it is overpriced in the current market. This investment strategy may not be suitable given the high acquisition cost versus the expected market return in a tourism-heavy area. Not ideal for: Student housing Investing in this overpriced unit for student housing is impractical, as the market does not support high rental yields in coastal tourist areas. A 2.1% gross yield further indicates that this property would not meet the income needs typical of student housing investments. Not ideal for: Luxury market The property valuation indicates it is overpriced, suggesting that it lacks the characteristics to perform well in the luxury market segment. Its moderate condition rating of 70/100 limits its attractiveness to affluent buyers seeking high-end properties.
Economic vulnerability The property faces a risk of declining economic stability due to its score of 70/100, which suggests potential fluctuations in market conditions that could impact rental income and property value.
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