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.
6-bedroom, 3-bathroom house of 249 m², built in 1993, energy rating D. Located on avenida do Caminho de Ferro, Palmela parish, Palmela municipality, Setúbal district. This property features a spacious outdoor terrace equipped for entertaining and includes a fully repaired outdoor shed, enhancing the leisure experience on its generous 880 m² plot.
The valuation. The asking price of €850,000 is significantly above the fair value of €418,832, presenting a disparity of €431,168 (50.7%). With the property being overpriced, potential investors should approach with caution.
Fair value modelled at €418,832 from the area baseline, adjusted for condition and location. Asking €850,000 sits €431,168 (50.7%) above — overpriced versus fair value.
Asking €850,000 versus the avenida do Caminho de Ferro area baseline of €611,046 (€2,454/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 53/100 (Housing Market 40 · Amenities 50 · Economic 40 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
avenida do Caminho de Ferro
Area baseline €611,046 + condition +€18,675 + location +€4,745 = modelled fair value of €418,832 (€1,682/m²), a €431,168 (50.7%) gap versus the €850,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida do Caminho de Ferro | Subject | €850,000 | €3,414 | — | 75 | 53 |
| avenida do Caminho de Ferro, 4 | Active | €825,000 | €3,313 | 2.9% | 80 | 43 |
| estrada da Serralheira | Active | €750,000 | €5,172 | 51.5% | 72 | 48 |
| Palmela · 6d5545 | Active | €850,000 | €3,744 | 9.7% | — | 56 |
| rua Fernando Namora, 9 | Active | €1,200,000 | €6,417 | 88.0% | 80 | 48 |
| Median comp | €837,500 | €4,458 | 30.6% | 80 | 48 |
Value-add renovation The property in Palmela is overpriced, with a fair value of €418,832 compared to the listing price of €850,000, resulting in a gap of 50.7%. Given its condition rating of 80/100, any renovation would likely be challenging to justify financially, considering the current market demands. Family rental The 2.6% gross yield suggests that the property may not attract long-term family tenants effectively due to its overpriced status and an overall neighborhood rating of 53/100. With limited economic activity in the peripheral region, families may seek better opportunities elsewhere. Long-term rental Investing in long-term rental in this location is problematic due to the property being priced at €850,000, significantly above its fair valuation of €418,832. The low yield of 2.6% further indicates that potential returns do not compensate for the purchase cost in this rural area with stagnant economic growth.
Economic vulnerability The property faces heightened investment risk due to a low economic stability score of 40/100, indicating potential challenges in the local economy that could impact rental income and property value.
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