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, 2-bathroom mix_use_building of 187 m², energy rating C. Located Funchal (Sao Pedro) parish, Funchal municipality. Noteworthy Features: The property includes a prime commercial location in the bustling center of Funchal, allowing for potential high rental income from multiple residential and retail units after renovation.
The valuation. The asking price of €499,000 sits slightly below the fair value of €505,791, presenting an opportunity with a variance of €6,791 (1.4%). This property is therefore considered underpriced. Buy-to-flip angle. The resale strategy could target short-term vacation rentals, capitalizing on Funchal's strong tourism appeal, potentially increasing property value through renovations. Buy-to-let angle. A long-term rental strategy could be pursued, considering the area’s mixed neighborhood and the potential demand for rental spaces due to the presence of good schools and tourism services.
Fair value modelled at €505,791 from the area baseline, adjusted for condition and location. Asking €499,000 sits €6,791 (1.4%) below — the upside to fair value.
Asking €499,000 versus the Funchal (Sao Pedro), Funchal area baseline of €638,418 (€3,414/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 30/100 (Condition 25 · Materials 30 · Room dimensions 40). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 68/100 (Housing Market 70 · Amenities 75 · Economic 65 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Funchal (Sao Pedro), Funchal
Area baseline €638,418 + condition -€131,484 + location +€42,802 = modelled fair value of €505,791 (€2,705/m²), a €6,791 (1.4%) gap versus the €499,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Funchal (Sao Pedro) · 5ece86 | Subject | €499,000 | €2,668 | — | 25 | 68 |
| rua da Queimada de Cima, 32 | Active | €1,195,000 | €2,464 | 7.7% | 25 | 68 |
| travessa do Forno, 19 | Active | €395,000 | €1,975 | 26.0% | — | 66 |
| Funchal (Santa Luzia) · 6032b5 | Active | €1,350,000 | €1,271 | 52.4% | 47 | 66 |
| rua Doutor Ângelo Augusto da Silva | Active | €900,000 | €2,045 | 23.3% | 60 | 65 |
| Median comp | €1,047,500 | €2,010 | 24.7% | 47 | 66 |
Short-term vacation rental This property presents an attractive opportunity for short-term vacation rentals due to its prime location in Funchal, where tourism is a key economic driver. With a fair value gap of 1.4%, it is positioned favorably to capitalize on the growing demand for accommodation in this tourist hotspot. Long-term rental Despite the property currently yielding 0% gross, its location within a neighborhood that scores 68/100 suggests potential for stable long-term rentals. The fair value being only 1.4% above the listing price indicates that it could be a competitive option in the rental market. Buy-and-hold Acquiring this property as a buy-and-hold investment could prove beneficial, given its proximity to Funchal's tourist attractions and services. The minimal gap to fair value and neighborhood rating suggest that it may appreciate over time in this dynamic market.
Economic Vulnerability With an economic stability score of 65/100 and tenant stability at 60/100, there is a significant risk that fluctuations in the local economy could lead to reduced rental income or higher vacancy rates.
