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.
0-bedroom, 3-bathroom mix_use_building of 1062 m², energy rating C. Located Funchal (Santa Luzia) parish, Funchal municipality. Noteworthy Features: This property includes a large plot of land at the rear, providing rare potential for outdoor spaces or further developments in a central location in Funchal.
The valuation. The asking price of €1,350,000 is significantly below fair value at €4,344,920, creating a difference of €2,994,920 (221.8%). This property is underpriced in the current market.
Fair value modelled at €4,344,920 from the area baseline, adjusted for condition and location. Asking €1,350,000 sits €2,994,920 (221.8%) below — the upside to fair value.
Asking €1,350,000 versus the Funchal (Santa Luzia), Funchal area baseline of €3,078,738 (€2,899/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 55/100 (Condition 47 · Materials 65 · Room dimensions 60). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 66/100 (Housing Market 70 · Amenities 70 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Funchal (Santa Luzia), Funchal
Area baseline €3,078,738 + condition -€325,238 + location +€280,912 = modelled fair value of €4,344,920 (€4,091/m²), a €2,994,920 (221.8%) gap versus the €1,350,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Funchal (Santa Luzia) · 6032b5 | Subject | €1,350,000 | €1,271 | — | 47 | 66 |
| rua da Queimada de Cima, 32 | Active | €1,195,000 | €2,464 | 93.8% | 25 | 68 |
| rua Doutor Ângelo Augusto da Silva | Active | €900,000 | €2,045 | 60.9% | 60 | 65 |
| Funchal (Santa Luzia) · 52307a | Active | €25,000 | €2,273 | 78.8% | — | 70 |
| travessa do Forno, 19 | Active | €395,000 | €1,975 | 55.4% | — | 66 |
| Median comp | €647,500 | €2,159 | 69.8% | 43 | 67 |
Short-term vacation rental This property in Funchal presents a significant opportunity for short-term vacation rentals, being priced at €1,350,000 against a fair value of €4,344,920, indicating a gap of 221.8%. With the potential for high demand in a vibrant tourist destination, this mix-use building could offer substantial returns despite its current yield of 0%. Long-term rental Investing in this property for long-term rental purposes makes sense given its fair valuation that significantly exceeds the listing price, providing a gap of over 220%. Though the condition is rated 55/100, the neighbourhood's score of 66/100 suggests adequate tenant quality that could support steady rental income over time. Buy-and-hold Opting for a buy-and-hold strategy on this Funchal property is advisable due to its substantial fair value spread, which indicates strong potential for appreciation. As the local economy and housing market evolve, this property could yield positive returns in the long run despite its current zero yield and average condition. Not ideal for The property is not suitable for student housing, luxury market, or industrial investment given the local demographics and economic context. Its characteristics do not align with the demands of these specific segments, which could limit performance in those areas.
Potential tenant turnover risk The combination of a Tenant Stability score of 60/100 and an Economic Stability score of 65/100 indicates a higher likelihood of tenant turnover, which could disrupt rental income.
