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.
3-bedroom, 3-bathroom penthouse of 133 m², built in 1997, energy rating E. Located on avenida Tomás Cabreira S / N, Portimão parish, Portimão municipality, Faro district. Noteworthy Features: The penthouse boasts a spacious sea-facing terrace with panoramic views and awnings for adjustable shade, providing an ideal outdoor leisure area for relaxation.
The valuation. The asking price of €535,000 is significantly above fair value, which is assessed at €206,604, rendering the property overpriced by €328,396 (61.4%). Such a valuation indicates a concerning investment risk. Buy-to-flip angle. Given the condition score of 55/100, a buy-to-flip strategy may not yield significant short-term gains, as extensive renovations are required to enhance appeal for resale. The property is currently lacking sufficient charm to attract high resale prices. Buy-to-let angle. With an estimated rental income of €1,516 per month, the gross yield stands at 3.4%. However, this income may be insufficient to justify the high purchase price, limiting long-term financial viability within a mixed neighbourhood.
Fair value modelled at €206,604 from the area baseline, adjusted for condition and location. Asking €535,000 sits €328,396 (61.4%) above — overpriced versus fair value.
Asking €535,000 versus the avenida Tomás Cabreira S / N area baseline of €228,361 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 (Condition 52 · Materials 58 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 78 · Amenities 72 · Economic 65 · Tenant Quality 71). Strong amenities and housing-market momentum support a premium to baseline.
avenida Tomás Cabreira S / N
Area baseline €228,361 + condition -€40,939 + location +€19,182 = modelled fair value of €206,604 (€1,553/m²), a €328,396 (61.4%) gap versus the €535,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida Tomás Cabreira S / N | Subject | €535,000 | €4,023 | — | 52 | 71 |
| Portimão · cfdd0f | Active | €370,000 | €3,426 | 14.8% | 70 | 75 |
| rua Fernão Magalhães | Active | €405,000 | €3,022 | 24.9% | 68 | 69 |
| Portimão · 65a73b | Active | €279,000 | €3,000 | 25.4% | 62 | 72 |
| avenida São João de Deus | Active | €369,000 | €5,055 | 25.7% | 62 | 74 |
| Median comp | €369,500 | €3,224 | 19.9% | 65 | 73 |
Long-term rental With a gross yield of only 3.4% and a fair value significantly lower at €206,604, the penthouse's current asking price of €535,000 indicates it is not an attractive option for long-term rental investments. The property’s condition rating of 55/100 further suggests that expenses could outweigh potential rental income, especially given the neighborhood’s moderate quality rating of 71/100. Short-term vacation rental Though the Algarve’s appeal as a tourist destination is strong, purchasing this penthouse at €535,000 when its fair value is only €206,604 signals that it is overpriced and may not yield the expected return for short-term vacation rentals. The yield of 3.4% does not justify the high investment risk associated with this property, especially considering its average condition rating. Buy-and-hold Investing in this penthouse as a buy-and-hold strategy is less favorable, with its price showing a 61.4% discrepancy from the fair value of €206,604, which indicates that the property is overpriced. Potential appreciation in a tourist-rich area like the Algarve does not compensate for the current investment premium, making this strategy less viable in the long run.
Economic Vulnerability The property faces a risk due to an economic stability score of 65/100, which suggests potential fluctuations in local economic conditions could impact tenant occupancy rates.
