House in Carcavelos e Parede

Overview

3-bedroom, 2-bathroom house of 210 m², built in 2024, energy rating D. Located Carcavelos e Parede parish, Cascais municipality, Lisbon district. Noteworthy Features: This villa features carefully designed balconies for each suite that maximize space while offering stunning sea views, enhancing the property's charm and exclusivity.

Financial Summary

The valuation. The asking price of €1,800,000 sits significantly above the fair value of €859,711, with a substantial difference of €940,289 (52.2%). Verdict: overpriced.

Investment Thesis

Long-term rental This property, listed at €1,800,000, shows a significant 52.2% gap against its fair value of €859,711, indicating it is overpriced. With a yield of only 2.6% gross, the potential return does not justify the current asking price, making it a less attractive long-term rental investment. Buy-and-hold The current valuation of €1,800,000, compared to the fair value of €859,711, highlights a substantial overpricing of 52.2%. Investing in this property for a buy-and-hold strategy would likely underperform due to the low yield of 2.6% and the significant difference from the fair market value. Family rental Although the suburban location of Carcavelos e Parede offers a safer environment and access to Lisbon, the €1,800,000 listing price is 52.2% above the fair valuation of €859,711, rendering it overpriced. The property’s low yield of 2.6% raises concerns for families seeking rental accommodations that are economically viable in the long run.

Risks

Tenant turnover risk With a tenant stability score of 60/100, there is a significant risk of high turnover, which can lead to increased costs and potential vacancy periods that impact overall returns.

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