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, 1-bathroom house of 335 m², built in 2002, energy rating D. Located Alvor parish, Portimão municipality, Faro district. Unique Feature: This property includes a fully independent second wing with a lodging license, offering potential for high rental yield in a popular tourist area. Outdoor Amenities: The heated saltwater pool is complemented by mature gardens featuring fruit trees and an integrated sound system throughout the house.
The valuation. The asking price of €1,099,000 is significantly above the fair value of €629,160, representing an excessive premium of €469,840 (42.8%). Verdict: overpriced. Buy-to-flip angle. The strategy would involve acquiring the property below fair value, renovating it to enhance its appeal, and aiming for a resale price that captures a profit after renovations. Buy-to-let angle. With an estimated rental income of €2,381/month, the gross yield stands at 2.6%, indicating a modest return but possible benefits from long-term holiday rental demand in the popular Algarve region.
Fair value modelled at €629,160 from the area baseline, adjusted for condition and location. Asking €1,099,000 sits €469,840 (42.8%) above — overpriced versus fair value.
Asking €1,099,000 versus the Alvor, Portimão, Faro area baseline of €1,119,235 (€3,341/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 72 · Materials 78 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 73/100 (Housing Market 75 · Amenities 70 · Economic 65 · Tenant Quality 80). Strong amenities and housing-market momentum support a premium to baseline.
Alvor, Portimão, Faro
Area baseline €1,119,235 + condition +€1,047 + location +€52,918 = modelled fair value of €629,160 (€1,878/m²), a €469,840 (42.8%) gap versus the €1,099,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alvor · 4d45b2 | Subject | €1,099,000 | €3,281 | — | 72 | 73 |
| ladeira de Nora | Active | €695,000 | €6,619 | 101.8% | 65 | 72 |
| estrada de Montes de Alvor S / N | Active | €420,000 | €3,621 | 10.4% | — | 74 |
| Alvor · 96c653 | Active | €400,000 | €5,000 | 52.4% | 68 | 64 |
| Alvor · 28b924 | Active | €950,000 | €2,754 | 16.1% | 65 | 61 |
| Median comp | €557,500 | €4,311 | 31.4% | 65 | 68 |
Long-term rental A long-term rental strategy may struggle to achieve satisfactory returns given that the property is overpriced by 42.8% compared to its fair value of €629,160. With a gross yield of only 2.6%, it is likely that this investment will not generate the desired income potential in the current market conditions. Short-term vacation rental The potential for short-term vacation rental income is limited due to the property's 42.8% markup over fair value, which stands at €629,160. This discrepancy, combined with a gross yield of just 2.6%, indicates that the investment does not fit into a profitable short-term rental strategy at this price point. Buy-and-hold While a buy-and-hold strategy could be appealing in a growing market, the current listing price is 42.8% higher than its fair value of €629,160, suggesting that the asset is overpriced. With a low yield of 2.6%, holding onto this property may not yield adequate returns over time.
Economic Vulnerability The economic stability score of 65 indicates a potential risk to your investment, as there may be fluctuations in local economic conditions that could impact tenant demand and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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