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, 3-bathroom house of 197 m², built in 1988, energy rating D. Located on rua Sophia de Mello Breyner Andresen, 3, Portimão parish, Portimão municipality, Faro district. Noteworthy Features: The property offers a cozy living room with a fireplace and direct balcony access from all bedrooms, enhancing both charm and functionality for family living.
The valuation. The asking price of €495,000 is significantly above the fair value of €380,077, making it overpriced by €114,923 or 23.2%. Investors should be cautious about acquiring this property at its current price. Buy-to-flip angle. The buy-to-flip strategy may be challenging, given the current valuation; substantial renovations would be necessary to increase resale value within this tourist-heavy market. Investors will need to carefully assess market conditions and potential resale prices. Buy-to-let angle. With an estimated gross yield of 5.7%, the property has potential as a buy-to-let investment, particularly for short-term vacation rentals. The proximity to Albufeira aligns well with lucrative rental opportunities, attracting tourists year-round.
Fair value modelled at €380,077 from the area baseline, adjusted for condition and location. Asking €495,000 sits €114,923 (23.2%) above — overpriced versus fair value.
Asking €495,000 versus the rua Sophia de Mello Breyner Andresen, 3 area baseline of €338,249 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 73 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 70 · Economic 75 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua Sophia de Mello Breyner Andresen, 3
Area baseline €338,249 + condition +€8,003 + location +€33,825 = modelled fair value of €380,077 (€1,929/m²), a €114,923 (23.2%) gap versus the €495,000 asking price.
Short-term vacation rental Despite the short-term rental potential in the tourist-heavy Portimão area, this property is listed at €495,000, which is 23.2% above its fair value of €380,077. The 5.7% gross yield may not be attractive enough to justify the premium price, especially given the competitive short-term rental market nearby. Buy-and-hold While the location offers solid long-term rental prospects, the current pricing of €495,000 exceeds the fair value, suggesting that this investment may not yield favorable returns over time. The high acquisition price can compress the overall returns, making it less appealing for long-term growth. Family rental Although the area could support family rentals due to its amenities and decent tenant quality, the property's listing at €495,000 reflects a significant overvaluation of 23.2% compared to its fair market price. Families may find better value per square meter in more fairly priced alternatives within the vicinity. Not ideal for: Student housing, Luxury market The property is not suited for the student housing market due to its pricing and family-oriented features. Additionally, entry into the luxury market does not align with the investment's valuation, which significantly exceeds fair expectations.
Potential Downturn Impact With both economic and tenant stability scores at 75/100, there is a risk of vulnerability to market fluctuations that could lead to decreased rental income or higher vacancy rates.
