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 93 m², built in 2002, energy rating E. Located on rua Frei Manuel Sepúlcro, Portimão parish, Portimão municipality, Faro district. This apartment features two east- and south-facing balconies totaling 8.40 m², enhancing outdoor living space and providing abundant natural light throughout the day.
The valuation. The asking price of €275,000 exceeds the fair value of €167,346 by €107,654, representing a 39.1% premium. This property is thus considered overpriced in the current market. Buy-to-flip angle. A buy-to-flip strategy could exploit potential market demand, but with the current valuation, a resale may require significant investment to enhance appeal and justify profitability. Buy-to-let angle. Estimated rental income of €962/month offers a gross yield of 4.2%, suitable for a buy-and-hold strategy, although seasonal fluctuations in this tourist region could impact occupancy rates.
Fair value modelled at €167,346 from the area baseline, adjusted for condition and location. Asking €275,000 sits €107,654 (39.1%) above — overpriced versus fair value.
Asking €275,000 versus the rua Frei Manuel Sepúlcro area baseline of €159,681 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 73 · Materials 77 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 62/100 (Housing Market 75 · Amenities 60 · Economic 55 · Tenant Quality 58). Strong amenities and housing-market momentum support a premium to baseline.
rua Frei Manuel Sepúlcro
Area baseline €159,681 + condition +€0 + location +€7,665 = modelled fair value of €167,346 (€1,799/m²), a €107,654 (39.1%) gap versus the €275,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Frei Manuel Sepúlcro | Subject | €275,000 | €2,957 | — | 73 | 62 |
| rua Frei Manuel Sepúlcro | Active | €295,000 | €3,172 | 7.3% | 78 | 72 |
| Portimão · 49b8f0 | Active | €255,000 | €4,722 | 59.7% | 75 | 81 |
| praceta da Borralha, 2 | Active | €330,000 | €2,920 | 1.2% | 70 | 75 |
| rua Vieira da Silva | Active | €495,000 | €4,125 | 39.5% | 72 | 70 |
| Median comp | €312,500 | €3,649 | 23.4% | 74 | 74 |
Short-term vacation rental The 2-bed apartment in Portimão is not an ideal candidate for a short-term vacation rental, as it is overpriced by 39.1% relative to its fair value of €167,346. The current gross yield of 4.2% is insufficient to justify the elevated purchase price in a primarily seasonal market. Buy-and-hold Investing in this property as a buy-and-hold strategy is inadvisable due to its significant markup above fair value, which stands at €275,000. Given the low tenant quality and fluctuating economic conditions in a tourist-driven area, the long-term returns appear uncertain and risky. Value-add renovation While renovations could potentially enhance the property’s appeal and yield, entering at an overpriced valuation limits the financial upside significantly. With a current condition score of 75/100 and the fair value gap of 39.1%, the initial investment may never recoup its costs due to the inflated entry point.
Potential Tenant Turnover Risk Low economic stability score of 55 and tenant stability score of 58 indicate a likelihood of higher tenant turnover, which could lead to increased vacancy rates and reduced cash flow.
