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, 2-bathroom mix_use_building of 485 m², energy rating C. Located on rua da Queimada de Cima, 32, Funchal (Se) parish, Funchal municipality. Unique Feature: The building's architectural setback creates opportunities for outdoor terraces, enhancing its potential for hospitality or premium rentals while leveraging the panoramic views of the historic center. Investment Potential: With a suitable renovation, this property can significantly increase its market value and attract diverse business uses.
The valuation. The asking price of €1,195,000 sits 11.0% below the fair value of €1,326,966, indicating that the property is underpriced relative to market expectations. Buy-to-flip angle. A buy-to-flip strategy can capitalize on increasing property values by renovating the building and targeting a resale at a premium price after improvements are made. Buy-to-let angle. The property’s location in Funchal, a popular tourist destination, allows for the possibility of consistent rental income through both long-term and short-term rental strategies, though it is currently yielding 0%.
Fair value modelled at €1,326,966 from the area baseline, adjusted for condition and location. Asking €1,195,000 sits €131,966 (11.0%) below — the upside to fair value.
Asking €1,195,000 versus the rua da Queimada de Cima, 32 area baseline of €1,541,815 (€3,179/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 32/100 (Condition 25 · Materials 30 · Room dimensions 45). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
rua da Queimada de Cima, 32
Area baseline €1,541,815 + condition -€325,859 + location +€111,011 = modelled fair value of €1,326,966 (€2,736/m²), a €131,966 (11.0%) gap versus the €1,195,000 asking price.
Long-term rental The property’s fair value of €1,326,966 presents a promising opportunity for long-term rental, especially as Funchal's balanced economic stability offers consistent demand. With an average tenant quality score of 68/100 in the neighborhood, the property is positioned to attract reliable tenants despite its current condition rating of 32/100. Short-term vacation rental Priced at €1,195,000, the property is aptly located in a tourist-heavy area of Madeira, enhancing its potential for short-term vacation rentals. Though the condition needs improvement, its fair value suggests an attractive investment for those looking to capitalize on the island's seasonal tourism trends. Buy-and-hold This mix-use building, despite needing renovations, is subvalorizada by 11.0% against its fair value, presenting an opportunity for a buy-and-hold strategy. With the neighborhood's robust economic stability and tourist appeal, investors can expect long-term appreciation as the area continues to grow. Not ideal for Given its current condition and lack of amenities catering to students or luxury clients, the property does not serve well for student housing or the luxury market. Instead, focusing on more appropriate rental strategies will yield better returns in this location.
Economic-tenant instability The combination of both economic and tenant stability scores at 65/100 suggests a heightened risk of volatility in rental income and occupancy rates due to potentially unsustainable economic conditions.
