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.
5-bedroom, 3-bathroom villa of 371 m², energy rating D. Located Portimão parish, Portimão municipality, Faro district. Noteworthy Features: The villa boasts a versatile basement with direct access to the outdoor leisure area and a dedicated support kitchen, ideal for hosting gatherings by the pool.
The valuation. The asking price of €1,450,000 is significantly above fair value, which stands at €730,042. This results in a staggering 49.7% premium, indicating that the property is overpriced.
Fair value modelled at €730,042 from the area baseline, adjusted for condition and location. Asking €1,450,000 sits €719,958 (49.7%) above — overpriced versus fair value.
Asking €1,450,000 versus the Portimão, Portimão, Faro area baseline of €1,196,846 (€3,226/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 (Condition 75 · Materials 85 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 74/100 (Housing Market 70 · Amenities 80 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Portimão, Portimão, Faro
Area baseline €1,196,846 + condition +€31,883 + location +€61,153 = modelled fair value of €730,042 (€1,968/m²), a €719,958 (49.7%) gap versus the €1,450,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Portimão · b7c0b4 | Subject | €1,450,000 | €3,908 | — | 75 | 74 |
| Alvor · 893460 | Active | €1,500,000 | €7,009 | 79.3% | 80 | 73 |
| Alvor · 6ebbc0 | Active | €1,500,000 | €5,282 | 35.1% | 79 | 72 |
| Alvor · 4a8031 | Active | €550,000 | €3,333 | 14.7% | 74 | 73 |
| rua Fernão de Magalhães, 16 | Active | €650,000 | €3,023 | 22.6% | 70 | 62 |
| Median comp | €1,075,000 | €4,308 | 10.2% | 77 | 73 |
Short-term vacation rental The property’s high asking price of €1,450,000, compared to its fair value of €730,042, suggests that it is overpriced and may not yield strong demand in the competitive vacation rental market of the Algarve. With a gross yield of just 1.8%, the financial return does not justify the investment risk associated with short-term rentals. Long-term rental At an asking price significantly above its fair value, this property does not present a compelling case for long-term rental profitability, especially with a gross yield of only 1.8%. The local rental market dynamics, combined with the high price point, indicate that this investment would be financially burdensome for landlords. Buy-and-hold Investing in this property for the long term appears unwise, given its 49.7% gap from fair value, which clearly signals it is overpriced. Moreover, the low yield of 1.8% indicates a meager cash flow potential, making it a questionable hold in the current market environment.
Potential Economic Volatility A score of 65 in economic stability may indicate potential market fluctuations, posing a risk to rental income stability and property value appreciation.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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