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 137 m², built in 1988, energy rating C. Located on rua Frei Tomé de Jesus, 1, Alvalade parish, Lisbon municipality, Lisbon district. This apartment offers a rare versatility with its T4 registration, allowing effortless reconversion to a four-bedroom layout while maintaining spacious living areas.
The valuation. The asking price of €895,000 sits significantly above the fair value of €256,437, representing an overpricing of €638,563 (71.3%). This property is categorically overpriced based on its valuation metrics. Buy-to-flip angle. Given the high-quality materials and modern aesthetics, a buy-and-flip strategy could capitalize on the upscale market, but the current pricing may limit potential profit margins upon resale. A short-term renovation could increase buyer interest. Buy-to-let angle. With an estimated rental income of €1,865/month, the gross yield of 2.5% suggests limited cash flow for a buy-to-let investment. This may deter long-term investors seeking greater returns in Lisbon's rental market.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Frei Tomé de Jesus, 1 | Subject | €895,000 | €6,533 | — | 81 | 75 |
| rua Angelina Vidal | Active | €499,900 | €6,249 | 4.3% | 82 | 84 |
| rua dos Açores, 53 | Active | €560,000 | €5,283 | 19.1% | 75 | 79 |
| Lumiar · 6d5340 | Active | €618,000 | €4,984 | 23.7% | 82 | 77 |
| calçada da Quintinha | Active | €640,000 | €6,400 | 2.0% | 85 | 90 |
| Median comp | €589,000 | €5,766 | 11.7% | 82 | 82 |
Long-term rental\nGiven the gross yield of 2.5%, this 3-bed apartment in Alvalade is not an attractive option for long-term rental investments, as the potential return is significantly below market expectations. The significant gap of 71.3% versus fair value suggests that investors are likely to encounter challenges in achieving favorable cash flow from this property.\n\nBuy-and-hold\nAcquiring this property as a buy-and-hold strategy is not advisable due to its overpriced valuation, with a listing price of €895,000 dramatically exceeding the fair value of €256,437. Although the Alvalade neighborhood has decent amenities, the investment's return potential is hampered by its current market position, yielding less incentive for long-term capital appreciation.\n\nValue-add renovation\nEven with an apartment condition rating of 83/100, the existing price of €895,000 indicates serious overpricing, reducing the viability of a value-add renovation strategy. While renovations may enhance property value, the substantial gap between the listing price and the fair value limits the potential for a worthwhile return on investment.\n\nNot ideal for short-term vacation rental\nThis property is unsuited for short-term vacation rentals, especially given its inflated price point and low yield. The high cost relative to fair value could make it difficult to recoup expenses and generate suitable occupancy rates in a competitive market.\n\nNot ideal for student housing\nEntering the student housing market with this overpriced property lacks strategic merit due to its elevated initial costs and mediocre return potential. In a market where affordability is key, the inflated price could deter potential student tenants, leading to higher vacancy rates.
[Tenant turnover risk] With a tenant stability score of 70/100, there is a heightened risk of tenant turnover that could lead to increased vacancy rates and associated costs.
