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 17758 m². Located on rua Fernão Ornelas, 25, 1º, Funchal (Sao Pedro) parish, Funchal municipality. Located in an ARU zone, this property offers potential tax benefits for developers and is positioned for high profitability with an approved Prior Information Request for mixed-use development.
The valuation. The asking price of €9,500,000 is significantly below the fair value of €40,836,172, representing a discount of €31,336,172 (329.9%). This property is clearly underpriced compared to its market potential. Buy-to-flip angle. The resale strategy focuses on attractive renovations and rebranding to cater to the high-demand tourism market in Madeira, aiming for a substantial profit margin when flipping the property. Buy-to-let angle. Implementing a short-term vacation rental strategy could capitalize on Funchal’s tourism, generating considerable rental income despite the current gross yield of 0%, given its prime location and future potential.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Fernão Ornelas, 25, 1º | Subject | €9,500,000 | €535 | — | — | 73 |
| Sao Martinho · 523063 | Active | €530,000 | €1,577 | 194.9% | — | 80 |
| Funchal (Santa Luzia) · 52307a | Active | €25,000 | €2,273 | 324.8% | — | 70 |
| Imaculado Coracao De Maria · aff755 | Active | €495,000 | €2,403 | 349.2% | 80 | 68 |
| rua Doutor Ângelo Augusto da Silva | Active | €900,000 | €2,045 | 282.3% | 60 | 65 |
| Median comp | €512,500 | €2,159 | 303.6% | 70 | 69 |
Short-term vacation rental The property is positioned to leverage the booming tourism market in Madeira, with its significant fair value indicating ample room for growth. Given the expected demand from vacationers, this investment could yield substantial returns as the area continues to draw visitors. Long-term rental With a fair value gap of 329.9%, the property represents an attractive long-term investment opportunity in a desirable neighborhood attracting quality tenants. As the local economy thrives on tourism, securing long-term rentals could offer stable cash flow. Buy-and-hold Owning this mix-use building offers a strategic entry into a highly favorable market, evidenced by a fair value significantly higher than the listing price. The potential appreciation over time, boosted by the neighborhood's amenities and tourism appeal, makes this a compelling buy-and-hold strategy.
Tenant turnover risk The combination of a Tenant stability score of 65/100 suggests a heightened risk of tenant turnover, which could lead to increased vacancy rates and associated costs.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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