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.
4-bedroom, 4-bathroom villa of 340 m², built in 1995, energy rating B. Located on tapada da Penina, Alvor parish, Portimão municipality, Faro district. Noteworthy Features: The villa offers a versatile garage with windows, allowing for multiple functional uses, and a large balcony with pool views accessible from all three en-suite bedrooms.
The valuation. The asking price of €1,250,000 sits significantly above the fair value of €667,670, making it overpriced by €582,330 (46.6%).
Fair value modelled at €667,670 from the area baseline, adjusted for condition and location. Asking €1,250,000 sits €582,330 (46.6%) above — overpriced versus fair value.
Asking €1,250,000 versus the tapada da Penina area baseline of €583,780 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 80 · Amenities 70 · Economic 50 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
tapada da Penina
Area baseline €583,780 + condition +€37,188 + location +€46,702 = modelled fair value of €667,670 (€1,964/m²), a €582,330 (46.6%) gap versus the €1,250,000 asking price.
Short-term vacation rental The property’s high asking price of €1,250,000 reflects a substantial mark-up of 46.6% above its fair value of €667,670, indicating it is overpriced. At a gross yield of only 2%, short-term rentals may not provide sufficient returns for investors in this tourist-heavy region of Algarve. Long-term rental At a fair value of €667,670, investing in this property at the listing price of €1,250,000 poses a significant risk due to its 46.6% overvaluation. With a low gross yield of 2%, the long-term rental strategy may not deliver stable income relative to the market conditions. Buy-and-hold Given the property is overpriced at €1,250,000 compared to the fair value of €667,670, the buy-and-hold strategy is questionable. The modest 2% yield further reduces the attractiveness of holding an asset in this competitive tourist market while being significantly overvalued.
Economic Vulnerability The property's economic stability score of 50/100 indicates a significant risk of fluctuations in the local market, potentially impacting rental income.
