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.
5-bedroom, 4-bathroom house of 215 m², built in 1994, energy rating D. Located on rua Fernão de Magalhães, 16, Portimão parish, Portimão municipality, Faro district. The property features two independent T1 apartments, ideal for generating rental income, alongside well-maintained traditional and modern design elements throughout the main residence.
The valuation. The asking price of €650,000 is significantly above the fair value of €377,804, which indicates that the property is overpriced by €272,196 (41.9%). This discrepancy suggests a lack of alignment with market expectations.
Fair value modelled at €377,804 from the area baseline, adjusted for condition and location. Asking €650,000 sits €272,196 (41.9%) above — overpriced versus fair value.
Asking €650,000 versus the rua Fernão de Magalhães, 16 area baseline of €369,155 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 72/100 (Condition 70 · Materials 75 · Room dimensions 73). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 62/100 (Housing Market 70 · Amenities 60 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
rua Fernão de Magalhães, 16
Area baseline €369,155 + condition -€9,070 + location +€17,719 = modelled fair value of €377,804 (€1,757/m²), a €272,196 (41.9%) gap versus the €650,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Fernão de Magalhães, 16 | Subject | €650,000 | €3,023 | — | 70 | 62 |
| Alvor · e40a8e | Active | €595,000 | €3,234 | 7.0% | 74 | 70 |
| Alvor · 4bbd5e | Active | €550,000 | €3,333 | 10.3% | 65 | 72 |
| Alvor · 0238f1 | Active | €615,000 | €3,618 | 19.7% | 70 | 63 |
| Alvor · 893460 | Active | €1,500,000 | €7,009 | 131.8% | 80 | 73 |
| Median comp | €605,000 | €3,476 | 15.0% | 72 | 71 |
Short-term vacation rental The property in Portimão is overpriced by 41.9%, limiting potential returns for short-term vacation rentals despite the area's appeal in Algarve. With a gross yield of just 4.5%, the financial metrics do not support a prudent investment strategy. Buy-and-hold Investing in this property as a buy-and-hold strategy poses a significant risk due to its 41.9% overpricing against fair value. The compromised gross yield of 4.5% further suggests that long-term appreciation may not justify the initial investment cost. Value-add renovation While a value-add renovation strategy could typically enhance property value, this particular property remains overpriced by 41.9%, compelling a reconsideration of investment. The current condition rating of 72/100 offers room for improvement, but the initial pricing creates a substantial financial burden on potential gains.
Economic Sensitivity The economic stability score of 60 suggests that changes in the local economy could adversely affect tenant demand and rental income, impacting cash flow. Tenant Turnover A tenant stability score of 60 indicates a moderate risk of tenant turnover, which could lead to increased vacancy rates and additional costs associated with finding new tenants.
