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.
3-bedroom, 3-bathroom penthouse of 154 m², built in 1998. Located Portimão parish, Portimão municipality, Faro district. Exceptional Feature: This penthouse includes a spacious terrace with a built-in barbecue, offering a unique outdoor entertaining space with breathtaking sea views not typical for the community.
The valuation. The asking price of €720,000 is significantly above the fair value of €311,167, indicating an excess of €408,833 (56.8%). This property is clearly overpriced.
Fair value modelled at €311,167 from the area baseline, adjusted for condition and location. Asking €720,000 sits €408,833 (56.8%) above — overpriced versus fair value.
Asking €720,000 versus the Portimão, Portimão, Faro area baseline of €496,804 (€3,226/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 80 · Materials 85 · Room dimensions 84). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 76/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Portimão, Portimão, Faro
Area baseline €496,804 + condition +€19,250 + location +€27,499 = modelled fair value of €311,167 (€2,021/m²), a €408,833 (56.8%) gap versus the €720,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Portimão · 001afa | Subject | €720,000 | €4,675 | — | 80 | 76 |
| Ferragudo · 6fbc4b | Active | €875,000 | €6,731 | 44.0% | 80 | 76 |
| urbanização da Hortinha | Active | €375,000 | €2,757 | 41.0% | 80 | 72 |
| Ferragudo · 6fb9b0 | Active | €460,000 | €3,239 | 30.7% | 75 | 72 |
| Alvor · 6fbad4 | Active | €495,000 | €3,390 | 27.5% | 75 | 70 |
| Median comp | €477,500 | €3,315 | 29.1% | 78 | 72 |
Short-term vacation rental The 3-bed penthouse in Portimão, priced at €720,000, is significantly overpriced compared to its fair value of €311,167, presenting a 56.8% gap. Despite being in a tourism-driven economy ideal for short-term rentals, the gross yield of 2.9% indicates that the investment does not align with market expectations. Long-term rental Acquiring this penthouse for long-term rental at €720,000 is not advisable, as it is priced substantially higher than its fair value of €311,167, creating a concerning 56.8% gap. The yield of 2.9% falls short of the returns typically expected in a healthy rental market, suggesting diminished profitability. Buy-and-hold Investing in this penthouse under a buy-and-hold strategy at the current listing price of €720,000 is not prudent, given that it is overpriced relative to its fair value of €311,167, with a significant 56.8% difference. The weak yield of 2.9% undermines the potential for sustainable growth and profitability over time.
Economic Vulnerability With an economic stability score of 65/100, there is a moderate risk that local economic downturns could impact tenant demand and rental income.
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