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 175 m², built in 1998, energy rating D. Located Palmela parish, Palmela municipality, Setúbal district. Noteworthy Features: The property includes an annex with a fully equipped kitchen and fireplace, perfect for entertaining, and features a spacious garden suitable for outdoor recreational activities.
The valuation. The asking price of €520,000 is €270,133 (51.9%) above the fair value of €249,867, indicating the property is overpriced. Buyers should proceed with caution given this significant discrepancy in pricing.
Fair value modelled at €249,867 from the area baseline, adjusted for condition and location. Asking €520,000 sits €270,133 (51.9%) above — overpriced versus fair value.
Asking €520,000 versus the Palmela, Palmela, Setúbal area baseline of €398,825 (€2,279/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 68/100 (Condition 70 · Materials 66 · Room dimensions 72). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 42/100 (Housing Market 40 · Amenities 45 · Economic 35 · Tenant Quality 50). Softer demand indicators apply a discount to baseline.
Palmela, Palmela, Setúbal
Area baseline €398,825 + condition -€19,141 + location -€8,893 = modelled fair value of €249,867 (€1,428/m²), a €270,133 (51.9%) gap versus the €520,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Palmela · be931d | Subject | €520,000 | €2,971 | — | 70 | 42 |
| Palmela · 49b851 | Active | €750,000 | €5,172 | 74.1% | 70 | 54 |
| Palmela · b7c377 | Active | €700,000 | €3,196 | 7.6% | 70 | 54 |
| estrada da Serralheira | Active | €750,000 | €5,172 | 74.1% | 72 | 48 |
| Palmela · 911899 | Active | €479,000 | €4,743 | 59.6% | 78 | 52 |
| Median comp | €725,000 | €4,958 | 66.8% | 71 | 53 |
Long-term rental The property is overpriced by 51.9% compared to its fair value of €249,867, indicating that potential returns may not justify the investment. Additionally, with a low yield of 3.7% and a neighbourhood rating of 42/100, tenant demand is likely to be constrained in this rural area. Value-add renovation While there may be opportunities for improvement with a condition rating of 68/100, the property remains overpriced, making it a risky investment for value-add renovation purposes. Given the economic limitations and seasonal nature of the area, realizing a return on renovation efforts may be challenging. Not ideal for short-term vacation rental The limited economic activity and rural characteristics of the Palmela area contribute to a lack of support for consistently high returns in short-term vacation rentals, leaving this strategy unsuitable. Moreover, the 51.9% gap between the listing and fair value further emphasizes the risk associated with this investment approach. Not ideal for student housing The seasonal economic activity and low neighbourhood score indicate a limited pool of potential tenants, making student housing a less favorable strategy in this market. Given the property's overvaluation, the investment's viability in this space is significantly compromised. Not ideal for the luxury market The property does not align with luxury market demands, particularly in a rural setting with limited amenities and a neighbourhood score of 42/100. The current listing price exacerbates the mismatch, marking the property as overpriced and not suitable for luxury positioning.
Economic vulnerability The property is at risk due to a low economic stability score of 35/100, indicating potential market volatility and reduced demand for rentals.
Contributions are public and shown with the author's name and role. Links posted by users are not endorsed by Private Markets.
Log in to continue
Please log in or create an account to access this page.
No posts yet for this property.
Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
Log in to buy the report or use a credit
