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.
0-bedroom, 1-bathroom studio of 50 m², energy rating D. Located Alvor parish, Portimão municipality, Faro district. Noteworthy Features: This studio boasts an unobstructed sea view and is located just a 5-minute walk from the beach, enhancing its investment potential in the Algarve. Valuation Verdict: FAIR
The valuation. The asking price of €295,000 significantly exceeds the fair value of €65,138, marking a disparity of €229,862 (77.9%). This property is clearly overpriced, reflected in the extensive gap between asking and fair value.
Fair value modelled at €65,138 from the area baseline, adjusted for condition and location. Asking €295,000 sits €229,862 (77.9%) above — overpriced versus fair value.
Asking €295,000 versus the Alvor, Portimão, Faro area baseline of €85,850 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 38/100 (Condition 35 · Materials 40 · Room dimensions 38). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 85 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Alvor, Portimão, Faro
Area baseline €85,850 + condition -€29,297 + location +€8,585 = modelled fair value of €65,138 (€1,303/m²), a €229,862 (77.9%) gap versus the €295,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alvor · 023826 | Subject | €295,000 | €5,900 | — | 35 | 75 |
| rua da Alvorada | Active | €259,000 | €4,047 | 31.4% | 65 | 70 |
| Alvor · 0325b0 | Active | €380,000 | €4,524 | 23.3% | 65 | 74 |
| Alvor · de0c1c | Active | €259,500 | €4,185 | 29.1% | — | 72 |
| praceta da Alvorada, 1 | Active | €253,000 | €3,833 | 35.0% | 60 | 75 |
| Median comp | €259,250 | €4,116 | 30.2% | 65 | 73 |
Short-term vacation rental The property is not a suitable investment for the short-term vacation rental strategy as it is overpriced by 77.9%, making it unlikely to generate the expected returns in a competitive rental market. With a gross yield of only 3.4%, the income potential does not justify the high purchase price, despite its proximity to tourist hotspots. Buy-and-hold Investing in this studio as a buy-and-hold strategy is unfavorable due to its significant gap from fair value at 77.9%, signaling that the market price does not align with its potential long-term appreciation. Moreover, the property’s condition rating of 38/100 raises concerns about future maintenance costs and rental desirability within the neighborhood. Luxury market This property is unsuitable for targeting the luxury market as it is listed at €295,000, which is significantly above its fair value of €65,138, indicating it may not attract the high-end clientele expected in that segment. The relatively low condition score of 38/100 further diminishes its appeal, making it an unlikely candidate for luxury investment strategies.
Economic Downturn Risk The economic stability score of 70/100 indicates a moderate risk of economic downturn affecting rental income and property value.
