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, 2-bathroom apartment of 134 m², built in 1996, energy rating B. Located Portimão parish, Portimão municipality, Faro district. Noteworthy Features: The apartment includes a stunning terrace offering unobstructed views of the Arade River and the Marina, perfect for breathtaking sunsets over the Algarve coastline.
The valuation. The asking price of €785,000 is significantly higher than the fair value of €260,501, reflecting an overpricing of €524,499 (66.8%). This discrepancy warrants a cautious approach for potential investors.
Fair value modelled at €260,501 from the area baseline, adjusted for condition and location. Asking €785,000 sits €524,499 (66.8%) above — overpriced versus fair value.
Asking €785,000 versus the Portimão, Portimão, Faro area baseline of €432,284 (€3,226/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 78 · Amenities 70 · Economic 65 · Tenant Quality 72). Strong amenities and housing-market momentum support a premium to baseline.
Portimão, Portimão, Faro
Area baseline €432,284 + condition +€11,097 + location +€19,327 = modelled fair value of €260,501 (€1,944/m²), a €524,499 (66.8%) gap versus the €785,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Portimão · 96c64b | Subject | €785,000 | €5,858 | — | 75 | 71 |
| Portimão · 4a81a4 | Active | €425,000 | €3,728 | 36.4% | 75 | 70 |
| urbanização Encosta do Pateiro | Active | €420,000 | €3,043 | 48.0% | 71 | 68 |
| Portimão · 1e638e | Active | €285,946 | €4,766 | 18.6% | 75 | 75 |
| Portimão · 6d51c7 | Active | €550,000 | €2,973 | 49.3% | 78 | 80 |
| Median comp | €422,500 | €3,386 | 42.2% | 75 | 73 |
Short-term vacation rental Given the location's reliance on tourism, the property may attract transient guests, yet its overpriced nature with a gap of 66.8% against fair value significantly reduces the immediate profitability of a vacation rental strategy. With a gross yield of only 1.7%, investors may struggle to achieve substantial returns compared to better-priced alternatives in the Algarve market. Long-term rental The 3-bed apartment in Portimão offers appeal for long-term tenants, but the property's high asking price fails to align with fair market value, which diminishes its attractiveness for stable rental income. A gross yield of 1.7% signals that potential long-term rentals may not cover costs effectively, making this an unfavorable investment option. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unwise due to its considerable overpricing, with a fair value of €260,501, suggesting limited appreciation potential. The combination of low yield and high acquisition cost raises questions about future asset enhancement in a region driven by tourism fluctuations.
Tenant turnover risk The relatively high tenant stability score of 72 indicates a likelihood of retention, but a score of 65 in economic stability raises concerns about potential turnover if economic conditions worsen, leading to increased vacancy rates and costs for new tenant acquisition.
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