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 apartment of 95 m², built in 2010, energy rating C. Located on rua Vale de Lagar, 21, Portimão parish, Portimão municipality, Faro district. Noteworthy Features: The apartment boasts a fully equipped kitchen with vibrant red cabinetry and a 6 m² balcony, enhancing its modern aesthetic and outdoor living space.
The valuation. The asking price of €274,800 is significantly above fair value at €173,468, representing an overpricing of €101,332 or 36.9%. This valuation suggests the property is overpriced. Buy-to-flip angle. A buy-to-flip strategy would aim for a resale after cosmetic enhancements, targeting a higher price than the initial acquisition to capitalize on the current market demand. Buy-to-let angle. The property offers an estimated gross yield of 4%, generating approximately €916 per month, making it a viable option for long-term rental income, especially due to the thriving tourism in Algarve.
Fair value modelled at €173,468 from the area baseline, adjusted for condition and location. Asking €274,800 sits €101,332 (36.9%) above — overpriced versus fair value.
Asking €274,800 versus the rua Vale de Lagar, 21 area baseline of €307,610 (€3,238/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 77/100 (Condition 70 · Materials 78 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 55 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua Vale de Lagar, 21
Area baseline €307,610 + condition +€2,523 + location +€7,830 = modelled fair value of €173,468 (€1,826/m²), a €101,332 (36.9%) gap versus the €274,800 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Vale de Lagar, 21 | Subject | €274,800 | €2,893 | — | 70 | 62 |
| avenida Tomás Cabreira, 34 | Active | €599,000 | €6,730 | 132.7% | 75 | 74 |
| avenida Tomás Cabreira, 34 | Active | €599,000 | €6,730 | 132.7% | 79 | 75 |
| praceta Mar de Timor | Active | €335,000 | €3,018 | 4.3% | 68 | 71 |
| Portimão · 4bc7e5 | Active | €450,000 | €3,462 | 19.7% | 75 | 72 |
| Median comp | €524,500 | €5,096 | 76.2% | 75 | 73 |
Short-term vacation rental The 2-bed apartment in Portimão, priced at €274,800, represents a significant 36.9% gap above its fair value of €173,468, making it less attractive for short-term vacation rental investments. With a gross yield of only 4% and the seasonal economic patterns in the area, this property is likely to underperform as a vacation rental. Family rental At €274,800, the apartment is overpriced relative to the fair value of €173,468, which could hinder its appeal in the family rental market where affordability is key. Additionally, the neighborhood’s score of 62/100 suggests limited tenant quality, making it a less desirable option for family rentals. Buy-and-hold The property’s listing price of €274,800 significantly exceeds its fair value of €173,468, indicating it may not be a strategic buy-and-hold investment. Given the economic instability due to seasonal employment and a gross yield of only 4%, this investment is likely to yield mediocre returns over time.
Economic volatility risk The economic stability score of 55 suggests potential fluctuations in local economic conditions, which may impact long-term tenant retention and rental income.
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