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, 3-bathroom house of 231 m², built in 1999, energy rating D. Located Alvor parish, Portimão municipality, Faro district. Noteworthy Features: The property includes a rooftop terrace with ocean views, suitable for an outdoor kitchen, and a converted basement apartment with a private entrance for independent living.
The valuation. The asking price of €649,000 is significantly below the fair value of €873,902, indicating a noteworthy discount of €224,902 (25.7%). The property is therefore underpriced, presenting a compelling opportunity for investors.
Fair value modelled at €873,902 from 6 comparable sales in the area. Asking €649,000 sits €224,902 (25.7%) below — the upside to fair value.
Asking €649,000 versus the Alvor, Portimão, Faro area baseline of €843,029 (€3,649/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 57/100 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 €843,029, adjusted for condition and micro-location, gives a modelled fair value of €873,902 (€3,783/m²), a €224,902 (25.7%) gap versus the €649,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alvor · 8ee88f | Subject | €649,000 | €2,810 | — | 54 | 72 |
| rua Serpa Pinto | Active | €695,000 | €5,940 | 111.4% | 60 | 80 |
| Alvor · 4d4200 | Active | €395,000 | €3,762 | 33.9% | 70 | 72 |
| urbanização das Villas da Bemposta | Active | €525,000 | €3,804 | 35.4% | 68 | 72 |
| estrada de Montes de Alvor S / N | Active | €420,000 | €3,621 | 28.9% | — | 74 |
| Median comp | €472,500 | €3,783 | 34.6% | 68 | 73 |
Short-term vacation rental With a gap of 25.7% between the listing price of €649,000 and the fair value of €873,902, this property presents an attractive opportunity for short-term vacation rentals in the Algarve tourist region. Given the average yield of 4.3% gross and the location's proximity to beaches, the potential for high occupancy rates during peak season is favorable. Long-term rental The property provides a solid entry point for long-term rental strategies, especially given the 72/100 neighbourhood rating, which suggests an appealing location for families and professionals. Although the current gross yield of 4.3% is moderate, the potential for appreciation exists as the local economy continues to recover and expand. Buy-and-hold Investors looking for a buy-and-hold strategy can benefit from the strong upside potential of this subvalorizada asset, given its fair value significantly exceeds the purchase price. With a condition score of 57/100 indicating room for improvements, the property can appreciate further while providing consistent rental income. Not ideal for student housing The property is not well-suited for student housing, primarily due to the transient nature of the neighborhood and seasonal fluctuations in the tourism-driven economy. A more stable rental market would better cater to the needs of students. Not ideal for industrial investment Given the residential nature of the property and its location in a tourist area, pursuing industrial investment strategies would not align with the property's potential. The demand dynamics and zoning regulations are more favorable to residential uses than to industrial development.
Economic Vulnerability A score of 65/100 for economic stability indicates potential fluctuations in the local economy, which could impact tenant demand and rental income.
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