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, 2-bathroom house of 132 m², built in 1982, energy rating E. Located Palmela parish, Palmela municipality, Setúbal district. Noteworthy Features: The property offers a unique opportunity for expansion with potential for building a second house on the spacious plot, enhancing its investment appeal. Location Benefits: Proximity to reputable schools, including St. Peter's International School, boosts its family-friendly allure.
The valuation. The asking price of €549,000 significantly exceeds the fair value of €206,428 by €342,572 (62.4%). This property is clearly overpriced in the current market scenario.
Fair value modelled at €206,428 from the area baseline, adjusted for condition and location. Asking €549,000 sits €342,572 (62.4%) above — overpriced versus fair value.
Asking €549,000 versus the Palmela, Palmela, Setúbal area baseline of €300,828 (€2,279/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 (Condition 78 · Materials 80 · Room dimensions 75). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 43/100 (Housing Market 35 · Amenities 45 · Economic 40 · Tenant Quality 50). Softer demand indicators apply a discount to baseline.
Palmela, Palmela, Setúbal
Area baseline €300,828 + condition +€2,681 + location -€5,869 = modelled fair value of €206,428 (€1,564/m²), a €342,572 (62.4%) gap versus the €549,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Palmela · b7c2de | Subject | €549,000 | €4,159 | — | 78 | 43 |
| Palmela · 49b8b8 | Active | €365,000 | €3,842 | 7.6% | 76 | 52 |
| Palmela · 6fba18 | Active | €450,000 | €3,103 | 25.4% | 76 | 45 |
| Palmela · 49b851 | Active | €750,000 | €5,172 | 24.4% | 70 | 54 |
| Palmela · 25f681 | Active | €550,000 | €4,583 | 10.2% | 80 | 45 |
| Median comp | €500,000 | €4,213 | 1.3% | 76 | 49 |
Long-term rental This property generates a gross yield of only 2.9%, well below many market expectations, indicating insufficient returns for a long-term rental strategy. Given the substantial gap of 62.4% to fair value, pursuing this strategy would likely lead to financial underperformance and increased risk. Value-add renovation The property, while offering scope for renovation, is currently overpriced by 62.4%, limiting the feasibility of significant value creation through improvements. The existing condition rating of 76/100 suggests some potential for enhancement, but the overall investment may not justify the costs involved. Buy-and-hold Investing in this property as a buy-and-hold strategy is ill-advised due to its current price being significantly above the fair value at €206,428. With a neighbourhood rating of only 43/100, long-term appreciation prospects appear dim, making this a risky option for investors looking for stable growth.
Low Economic and Tenant Stability Risk The economic stability score of 40/100 indicates a weak local economy, while the tenant stability score of 50/100 suggests a moderately unstable tenant base, creating challenges in rental income consistency and property value retention.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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