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.
1-bedroom, 2-bathroom house of 71 m², built in 1951. Located on rua 16 de Maio, Portimão parish, Portimão municipality, Faro district. This property includes a unique private front patio with dedicated parking, a rare feature in the city center, enhancing its value for residents seeking outdoor space.
The valuation. The asking price of €355,000 exceeds the fair value of €137,981 by €217,019, equating to a 61.1% premium. This property is fundamentally overpriced as it does not align with the current market value.
Fair value modelled at €137,981 from the area baseline, adjusted for condition and location. Asking €355,000 sits €217,019 (61.1%) above — overpriced versus fair value.
Asking €355,000 versus the rua 16 de Maio area baseline of €229,898 (€3,238/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua 16 de Maio
Area baseline €229,898 + condition +€3,883 + location +€12,191 = modelled fair value of €137,981 (€1,943/m²), a €217,019 (61.1%) gap versus the €355,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua 16 de Maio | Subject | €355,000 | €5,000 | — | 75 | 75 |
| rua Infante Santo, 1 | Active | €535,000 | €4,496 | 10.1% | 75 | 72 |
| Portimão · 65a674 | Active | €349,000 | €4,474 | 10.5% | 75 | 73 |
| rua de Francisco Duarte | Active | €320,000 | €4,000 | 20.0% | 75 | 70 |
| Portimão · 0902f6 | Active | €685,000 | €3,663 | 26.7% | 73 | 68 |
| Median comp | €442,000 | €4,237 | 15.3% | 75 | 71 |
Long-term rental Given the property is overpriced with a 61.1% gap from fair value, investing in a long-term rental strategy may not yield satisfactory returns. The gross yield of 3.5% is below the optimal threshold for a stable income stream, suggesting caution in this approach. Short-term vacation rental With the property priced significantly above its fair value, a short-term vacation rental strategy could struggle to justify its initial investment. The prevalent tourism in the Algarve might attract short-term tenants, but the 61.1% gap makes it less appealing for profitable engagement. Buy-and-hold Adopting a buy-and-hold strategy for this overpriced property may expose investors to unnecessary risks given a fair value significantly lower than the listing price. The relatively low yield of 3.5% combined with the steep gap from fair value raises concerns about the long-term viability of capital appreciation in this case.
Economic Downturn Risk The property has an economic stability score of 65/100, indicating potential vulnerability to economic downturns which could affect tenant retention and rental income stability.
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