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 penthouse of 156 m², built in 1999, energy rating D. Located Alvor parish, Portimão municipality, Faro district. This penthouse features the largest south-facing balcony in the complex, providing unobstructed 180° views over Portimão, Alvor, and the Atlantic, enhancing its exclusive outdoor living experience.
The valuation. The asking price of €395,000 exceeds the fair value of €309,704 by €85,296 (21.6%), indicating that the property is overpriced. This discrepancy will require careful consideration from potential investors.
Fair value modelled at €309,704 from the area baseline, adjusted for condition and location. Asking €395,000 sits €85,296 (21.6%) above — overpriced versus fair value.
Asking €395,000 versus the Alvor, Portimão, Faro area baseline of €267,852 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 83/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 72/100 (Housing Market 80 · Amenities 75 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Alvor, Portimão, Faro
Area baseline €267,852 + condition +€18,281 + location +€23,571 = modelled fair value of €309,704 (€1,985/m²), a €85,296 (21.6%) gap versus the €395,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alvor · 0dcf58 | Subject | €395,000 | €2,532 | — | 80 | 72 |
| avenida das Comunidades Lusíadas, 3 | Active | €450,000 | €3,462 | 36.7% | 74 | 70 |
| Portimão · 261fb5 | Active | €595,000 | €3,287 | 29.8% | 78 | 66 |
| avenida Tomás Cabreira, 34 | Active | €525,000 | €5,899 | 133.0% | 80 | 67 |
| Portimão · dbd491 | Active | €460,000 | €2,754 | 8.8% | 72 | 70 |
| Median comp | €492,500 | €3,375 | 33.3% | 76 | 69 |
Short-term vacation rental The property’s asking price of €395,000 represents a 21.6% gap above its fair value of €309,704, suggesting it may not generate enough return to justify the high entry cost. Although the gross yield of 4.7% reflects some potential for short-term rentals, the overpriced status raises concerns over rental profitability in a competitive tourist market. Buy-and-hold With a fair value of €309,704, the property at €395,000 is overpriced by 21.6%, impacting the long-term investment strategy. The moderate condition score of 83/100 does not sufficiently compensate for the elevated purchase price in a tourist-driven region like Algarve. Family rental The 21.6% premium over the fair value of €309,704 indicates that this property is overpriced, making it a less appealing option for family rentals. The neighbourhood's score of 72/100 does not enhance the investment case significantly, given the high cost and limited rental yield in a fluctuating market.
Potential Economic Downturn The economic stability score of 65/100 indicates potential vulnerabilities in the local market, which could affect tenant retention and overall property value.
