Apartment in Benfica

Overview

3-bedroom, 2-bathroom apartment of 92 m², built in 1866, energy rating D. Located on rua República da Bolívia, Benfica parish, Lisbon municipality, Lisbon district. Noteworthy Features: The apartment boasts high-quality finishes, including white lacquered window frames with double glazing, maximizing both aesthetic appeal and energy efficiency. Additionally, the living area features a spacious 40m² open concept design, enhancing connectivity and natural light.

Financial Summary

The valuation. The asking price of €479,900 is significantly above the fair value of €401,330, marking an overpriced status of €78,570 (16.4%). This indicates that potential investors should exercise caution before committing. Buy-to-flip angle. The resale strategy relies on renovating the apartment slightly further for aesthetic appeal and marketing it in a rising market, aiming for a quick turnaround to capitalize on buyer interest. Buy-to-let angle. Implementing a long-term rental strategy, the gross yield of 3.5% suggests earning approximately €1,400 monthly, a reasonable return given the property’s location and quality.

Valuation

Fair value modelled at €401,330 from the area baseline, adjusted for condition and location. Asking €479,900 sits €78,570 (16.4%) above — overpriced versus fair value.

Investment Thesis

Long-term rental The property is overpriced at €479,900 compared to the fair value of €401,330, indicating an inflated investment risk. At a gross yield of 3.5%, potential returns may not justify the elevated entry cost. Buy-and-hold With a fair value of €401,330, the current listing price suggests the property is overpriced by 16.4%. This misalignment between price and value raises concerns regarding asset appreciation over the long term, making it a less attractive buy-and-hold investment. Family rental While the apartment in Benfica offers a decent condition score of 86/100, its overpriced status at €479,900 could limit its appeal to families looking for value. The lack of a competitive price could deter tenants seeking reasonable rental costs in the area. Not ideal for short-term rental Given the property's overpriced valuation of €479,900, it is unlikely to yield a favorable return for short-term rental strategies. The local market conditions and pricing do not support the aggressive pricing typically associated with short-term rentals. Not ideal for luxury market The apartment's fair value of €401,330 suggests it does not align with luxury market expectations, as it is currently overpriced. This misalignment could hinder its appeal to high-end buyers seeking premium offerings in Lisbon. Not ideal for student housing At €479,900, the property is priced above its fair value, making it an unsuitable option for student housing market strategies. Students typically seek more economical options, and the high price point may limit demand in this sector.

Risks

Market Vulnerability The economic stability and tenant stability scores are both 70/100, indicating a potential susceptibility to market fluctuations that may affect rental income and property value.

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