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.
1-bedroom, 1-bathroom apartment of 42 m² on the 2nd floor, energy rating D. Located on rua da Palmeira, Misericórdia parish, Lisbon municipality, Lisbon district. This apartment offers the unique potential to customize modern living space while preserving the historical charm of one of Lisbon's most sought-after neighborhoods.
The valuation. The asking price of €275,000 is €25,154 (10.1%) above the fair value of €249,846, indicating that while the property is not significantly overpriced, it is priced at a premium in the current market. Buy-to-flip angle. The buy-to-flip strategy could involve minor upgrades to increase appeal and a resale targeting a price closer to €300,000, capitalizing on Lisbon’s attractive housing market dynamics. Buy-to-let angle. With an estimated rental income of €1,077 per month, this property offers a gross yield of 4.7%, making it a viable option for long-term rental in a desirable neighborhood.
Fair value modelled at €249,846 from 6 comparable sales in the area. Asking €275,000 sits €25,154 (10.1%) above — overpriced versus fair value.
Asking €275,000 versus the rua da Palmeira area baseline of €258,384 (€6,152/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 42/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €258,384, adjusted for condition and micro-location, gives a modelled fair value of €249,846 (€5,949/m²), a €25,154 (10.1%) gap versus the €275,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua da Palmeira | Subject | €275,000 | €6,548 | — | 40 | 82 |
| Campolide · f36253 | Active | €265,000 | €4,569 | 30.2% | 35 | 83 |
| rua Filinto Elísio | Active | €340,000 | €5,231 | 20.1% | 36 | 70 |
| rua Luís de Camões | Active | €350,000 | €7,447 | 13.7% | 40 | 78 |
| rua Arco do Carvalhão, 3 | Active | €290,000 | €7,250 | 10.7% | 40 | 85 |
| Median comp | €315,000 | €6,241 | 4.7% | 38 | 81 |
Long-term rental The apartment presents a gross yield of 4.7%, which is a reasonable return considering the location's popularity and demand for long-term housing. Given its fair value of €249,846, the current listing price reflects an acceptable investment without significant upside potential in the near term. Buy-and-hold Investing in this property could yield stable cash flow due to its proximity to Lisbon's historical and commercial centers, appealing to a diverse tenant base. However, with a condition rating of 42/100, future renovation costs should be considered before committing to a buy-and-hold strategy. Family rental This one-bedroom apartment, while suitable for families seeking a longer-term residence in a vibrant neighborhood, may require additional investment in upgrades to meet familial needs. The fair value analysis indicates that while the purchase price is aligned with market expectations, significant renovations may be necessary to enhance its appeal to family tenants.
Economic Downturn Risk A significant economic downturn could negatively impact tenant stability, given the current scores of 85/100 for economic stability and 75/100 for tenant stability, leading to increased vacancy rates and potential rent reductions.
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