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.
2-bedroom, 2-bathroom apartment of 104 m² on the 3rd floor, built in 1982, energy rating D. Located on rua São Tomé e Principe S / N, Palmela parish, Palmela municipality, Setúbal district. Noteworthy Features: The apartment offers abundant natural light through large windows, enhancing the spacious feel, while traditional elements blend seamlessly with modern renovations for a unique aesthetic.
The valuation. The asking price of €320,000 is significantly below the fair value of €360,872, presenting an opportunity with a difference of €40,872 (11.3%). This property is underpriced. Buy-to-flip angle. With a focus on renovations, this buy-to-flip strategy aims to enhance the property's condition to better reflect its fair market value and attract a higher resale price. Buy-to-let angle. The potential gross yield of 3.2% (~€853/month) offers a steady rental income strategy, making this apartment a viable option for long-term investment in a mixed neighbourhood.
Fair value modelled at €360,872 from 6 comparable sales in the area. Asking €320,000 sits €40,872 (11.3%) below — the upside to fair value.
Asking €320,000 versus the rua São Tomé e Principe S / N area baseline of €289,825 (€2,787/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 81/100 is above the parish average, lifting 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 €289,825, adjusted for condition and micro-location, gives a modelled fair value of €360,872 (€3,470/m²), a €40,872 (11.3%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua São Tomé e Principe S / N | Subject | €320,000 | €3,077 | — | 78 | 48 |
| Setúbal (São Sebastião) · 8ee59d | Active | €299,000 | €4,211 | 36.9% | 76 | 54 |
| rua Cidade da Beira | Active | €329,000 | €4,113 | 33.7% | 78 | 61 |
| rua Agostinho Augusto Pereira, 113 | Active | €320,000 | €3,368 | 9.5% | 78 | 59 |
| rua União das Freguesias de Setúbal | Active | €275,000 | €3,571 | 16.1% | 75 | 48 |
| Median comp | €309,500 | €3,842 | 24.9% | 77 | 57 |
Long-term rental The property presents an attractive opportunity for long-term rental, given its fair value of €360,872 relative to the listing price of €320,000, indicating it is subvalued by 11.3%. The 3.2% gross yield suggests steady rental income potential, making it a viable investment in this rural Portuguese market. Value-add renovation This 2-bedroom apartment possesses a solid base for a value-add renovation strategy, where upgrades could further increase its appeal and rental returns despite the current condition score of 81/100. The gap to fair value indicates potential for enhanced property value post-renovation, capitalizing on localized demand. Short-term vacation rental The property is not ideal for a short-term vacation rental strategy, as it is located in a rural area of Portugal with a neighborhood rating of only 48/100, indicating potential difficulties in attracting tourists. Additionally, the modest yield of 3.2% may not justify the investment typically required for vacation rental properties. Student housing Given the location's lack of nearby educational institutions and the rural nature of Palmela, this property is poorly suited for student housing initiatives. The tenant quality in this area may not attract sufficient demand for this type of rental. Luxury market The property is also not positioned for the luxury market, as it is situated in an agricultural region with limited amenities and a neighborhood rating that reflects these constraints. The overall investment dynamics suggest that pursuing luxury tenants may not yield sufficient returns in this context.
Economic Restructuring Risk: With an economic stability score of 40/100, there is a significant risk of declining demand for rental units, potentially leading to increased vacancy rates and reduced rental income.
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