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, 0-bathroom mix_use_building of 250 m², built in 1988. Located on rua de Santa Luzia, Funchal (Santa Luzia) parish, Funchal municipality. Occupying a prime corner position, this property benefits from excellent visibility and foot traffic, enhancing its appeal for commercial redevelopment in Funchal's bustling tourism district.
The valuation. The asking price of €950,000 sits 12.5% above the fair value of €831,207, indicating that the property is overpriced. Efforts should be made to negotiate closer to fair market value.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Santa Luzia | Subject | €950,000 | €3,800 | — | — | 72 |
| rua da Ponte Nova, 31 | Active | €499,000 | €2,683 | 29.4% | 40 | 69 |
| travessa do Forno, 19 | Active | €395,000 | €1,975 | 48.0% | — | 66 |
| rua da Queimada de Cima, 32 | Active | €1,195,000 | €2,464 | 35.2% | 25 | 68 |
| rua Doutor Ângelo Augusto da Silva | Active | €900,000 | €2,045 | 46.2% | 60 | 65 |
| Median comp | €699,500 | €2,255 | 40.7% | 40 | 67 |
Short-term vacation rental This property is overpriced at €950,000 with a fair value of €831,207, indicating a significant gap that makes it a less attractive option for vacation rental investments. Given the 0% gross yield and poor condition rating, potential returns are unlikely to meet investor expectations in a market that relies heavily on tourism. Long-term rental The 0% gross yield and overpriced listing highlight that this property is not a sound choice for long-term rental strategies, especially considering the €950,000 price tag. The economic sustainability of the area is contingent upon tourism, and the current state does not provide a reliable rental income opportunity. Buy-and-hold Investing in this property as a buy-and-hold strategy is unadvisable due to its overpriced valuation at €950,000, far from the fair value of €831,207. Additionally, the combination of 0% gross yield and poor condition suggests that holding this asset may not result in favorable long-term appreciation or cash flow. Not ideal for: Student housing, Luxury market, Value-add renovation
Tenant turnover risk: With a tenant stability score of 68/100, there is a notable risk of increased turnover and vacancy rates, potentially impacting cash flow and overall investment performance.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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