Apartment in Campo de Ourique

Overview

2-bedroom, 1-bathroom apartment of 70 m², energy rating D. Located Campo de Ourique parish, Lisbon municipality, Lisbon district. This apartment boasts stunning panoramic views of the Tagus River and the 25th of April Bridge, offering a serene backdrop for relaxation or entertaining.

Financial Summary

The valuation. The asking price of €480,000 is significantly above the fair value of €226,708, representing a 52.8% premium. This property is considered overpriced given its current market evaluation.

Investment Thesis

Long-term rental While the gross yield of 3.3% suggests a modest return, the property is significantly overpriced at €480,000, 52.8% higher than its fair value of €226,708. This disparity diminishes its attractiveness for a long-term rental strategy, as the financial fundamentals do not support the high purchase price. Buy-and-hold The buy-and-hold strategy for this apartment is negatively impacted by its overvaluation, making it a less compelling investment given its fair value of only €226,708 compared to the listing price of €480,000. Holding a property with such a significant pricing gap will limit capital appreciation potential and hinder overall investment performance. Family rental Despite the strong neighbourhood score of 80/100, the significant price gap of 52.8% suggests the property is overpriced, which may deter potential family tenants at the proposed rental price. Consequently, the current valuation undermines the financial viability of a family rental strategy in this central Lisbon location.

Risks

[Tenant turnover risk] With a tenant stability score of 65/100, there is a significant risk of increased turnover, potentially leading to vacancies and loss of rental income.

Run your numbers

Community

Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.

No posts yet for this property.