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.
2-bedroom, 2-bathroom penthouse of 191 m², built in 2008, energy rating B. Located on rua Francisco Alvo, 5, Portimão parish, Portimão municipality, Faro district. Exceptional outdoor terrace of over 37m² featuring a jacuzzi and barbecue, designed for leisure and privacy, with stunning unobstructed river views and excellent sun exposure.
The valuation. The asking price of €435,000 is significantly above the fair value of €375,664, creating a discrepancy of €59,336 (13.6%). This property is considered overpriced in the current market.
Fair value modelled at €375,664 from the area baseline, adjusted for condition and location. Asking €435,000 sits €59,336 (13.6%) above — overpriced versus fair value.
Asking €435,000 versus the rua Francisco Alvo, 5 area baseline of €327,947 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 78 · Materials 82 · Room dimensions 79). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 75 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Francisco Alvo, 5
Area baseline €327,947 + condition +€14,922 + location +€32,795 = modelled fair value of €375,664 (€1,967/m²), a €59,336 (13.6%) gap versus the €435,000 asking price.
Short-term vacation rental This property is priced above fair value, making it less attractive for short-term vacation rentals, especially given its gross yield of only 2.9%. The tourism-driven economy in Algarve may not be sufficient to support the premium pricing for this penthouse, limiting potential profitability. Buy-and-hold At €435,000, this penthouse appears overpriced compared to its fair value of €375,664, which raises concerns for long-term appreciation in a competitive market. While the quality of the property is decent, the yield of 2.9% is unlikely to yield substantial returns for investors looking for wealth accumulation. Family rental While this penthouse has suitable characteristics for a family rental, the pricing of €435,000 isn't justified against the fair value, indicating it may not attract long-term tenants. With an average condition rating and a neighborhood score of 75/100, the property may struggle to compete in the family rental segment at its current price point.
Economic Sensitivity Risk The property could be adversely affected by economic fluctuations given its economic stability score of 70, which indicates moderate vulnerability compared to higher stability scores.
