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.
4-bedroom, 2-bathroom apartment of 151 m², built in 1988, energy rating E. Located on estrada de Alvor, Portimão parish, Portimão municipality, Faro district. This property features a large terrace, ideal for outdoor gatherings and entertaining, while the modern kitchen boasts high-quality materials that enhance both functionality and style.
The valuation. The asking price of €395,000 is significantly above the fair value of €281,935, marking an overpriced position by €113,065, or 28.6%. This discrepancy indicates an unfavorable investment outlook.
Fair value modelled at €281,935 from the area baseline, adjusted for condition and location. Asking €395,000 sits €113,065 (28.6%) above — overpriced versus fair value.
Asking €395,000 versus the estrada de Alvor area baseline of €488,938 (€3,238/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 75 · Materials 70 · Room dimensions 70). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 78/100 (Housing Market 80 · Amenities 80 · Economic 75 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
estrada de Alvor
Area baseline €488,938 + condition -€6,370 + location +€29,038 = modelled fair value of €281,935 (€1,867/m²), a €113,065 (28.6%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de Alvor | Subject | €395,000 | €2,616 | — | 75 | 78 |
| estrada de Alvor | Active | €265,000 | €1,893 | 27.6% | — | 71 |
| rua Fernão Magalhães | Active | €405,000 | €3,022 | 15.5% | 68 | 69 |
| rua Dom Afonso V, 3 | Active | €550,000 | €2,466 | 5.7% | 75 | 73 |
| rua Diogo Goncalves | Active | €487,500 | €1,741 | 33.4% | 70 | 70 |
| Median comp | €446,250 | €2,180 | 16.7% | 70 | 71 |
Short-term vacation rental Given the 0% gross yield and the significant gap from fair value, investing in this property as a short-term vacation rental is not advisable. Seasonal demand in Algarve is high, but the current pricing does not support a profitable rental model. Buy-and-hold The substantial overpricing and the property’s condition rating of 72/100 suggest that it may not appreciate in value as anticipated over time. With a fair value of €281,935, the inherent financial risk makes this buy-and-hold strategy less attractive. Luxury market The property’s location in Algarve could appeal to luxury market investors, yet the €395,000 listing price is misaligned with the fair value assessment. Investing in the luxury market requires attention to fair value and demand dynamics, and this property does not meet those criteria, presenting a significant gap from market expectations.
Economic Downturn Impact The property may be vulnerable to market fluctuations, as the economic stability score of 75/100 suggests moderate risks associated with downturns affecting rent prices and demand.
