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, 0-bathroom house of 351 m², built in 1994, energy rating C. Located Palmela parish, Palmela municipality, Setúbal district. Noteworthy Feature: This property includes a heated saltwater pool on the private terrace, offering panoramic views of Palmela Castle and easy access to the attic with additional accommodation. Investment Potential: With a 10-year rental contract guaranteeing a 7% annual yield, it presents a significant opportunity for investors seeking a property in a finishing phase that allows personalization.
The valuation. The asking price of €990,000 is significantly above the fair value of €526,604, marking a difference of €463,396 or 46.8%. Based on this analysis, the property is deemed overpriced. Buy-to-flip angle. A buy-and-flip strategy could be challenging due to the high acquisition cost compared to fair market value, likely limiting potential resale profit. Current renovations may improve appeal, but market demand remains uncertain. Buy-to-let angle. The estimated rental income of €1,732/month translates to a gross yield of 2.1%, which is below typical investment benchmarks. This lower yield suggests that long-term investment may not yield significant financial returns.
Fair value modelled at €526,604 from the area baseline, adjusted for condition and location. Asking €990,000 sits €463,396 (46.8%) above — overpriced versus fair value.
Asking €990,000 versus the Palmela, Palmela, Setúbal area baseline of €861,354 (€2,454/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 70/100 (Condition 68 · Materials 80 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 48/100 (Housing Market 40 · Amenities 45 · Economic 35 · Tenant Quality 55). Softer demand indicators apply a discount to baseline.
Palmela, Palmela, Setúbal
Area baseline €861,354 + condition -€26,325 + location -€4,459 = modelled fair value of €526,604 (€1,500/m²), a €463,396 (46.8%) gap versus the €990,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Palmela · 4ba28d | Subject | €990,000 | €2,821 | — | 68 | 48 |
| estrada do Vale dos Barris | Active | €2,200,000 | €15,714 | 457.1% | 62 | 42 |
| Palmela · 2620d6 | Active | €205,000 | €3,942 | 39.8% | — | 47 |
| Palmela · 49b8b8 | Active | €365,000 | €3,842 | 36.2% | 76 | 52 |
| Palmela · 6fba18 | Active | €450,000 | €3,103 | 10.0% | 76 | 45 |
| Median comp | €407,500 | €3,892 | 38.0% | 76 | 46 |
Long-term rental Given the €990,000 listing price, which is €463,396 above the fair value of €526,604, the investment in long-term rental is not justified by the gross yield of just 2.1%. With a neighborhood score of 48 out of 100, the limited urban development in the area indicates that tenant demand may not justify such an investment. Buy-and-hold Investing in a buy-and-hold strategy is not advisable due to the property being overpriced by 46.8%, offering little potential for value appreciation compared to the fair value of €526,604. The overall condition rating of 70 out of 100 alongside a low neighborhood score suggests ongoing maintenance costs could further diminish long-term returns.
Economic Instability Risk The property may face significant financial challenges due to a low economic stability score of 35/100, indicating a weak local market.
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