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.
6-bedroom, 5-bathroom house of 471 m², built in 2013, energy rating A. Located Alvor parish, Portimão municipality, Faro district. Noteworthy Features: The property includes an external elevator and extensive outdoor space with a pool, providing both luxury and accessibility in a tranquil setting overlooking the sea.
The valuation. The asking price of €4,000,000 is significantly above the fair value of €1,498,943, representing a staggering premium of €2,501,057 (166.9%). This property is distinctly overpriced. Buy-to-flip angle. A resale or wholesale strategy would require significant market appreciation since the purchase price exceeds fair value. Short-term price corrections could offer opportunities for profit, but risks are elevated. Buy-to-let angle. Given the estimated rental income of €3,667/month, the gross yield stands at a modest 1.1%. This rental income strategy caters to the tourist-driven economy identified in the Algarve region.
Fair value modelled at €1,498,943 from 6 comparable sales in the area. Asking €4,000,000 sits €2,501,057 (166.9%) above — overpriced versus fair value.
Asking €4,000,000 versus the Alvor, Portimão, Faro area baseline of €1,127,737 (€2,394/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 86/100 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 €1,127,737, adjusted for condition and micro-location, gives a modelled fair value of €1,498,943 (€3,182/m²), a €2,501,057 (166.9%) gap versus the €4,000,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Alvor · 3a70ff | Subject | €4,000,000 | €8,493 | — | 82 | 73 |
| Alvor · ba5a64 | Active | €840,000 | €3,307 | 61.1% | 83 | 71 |
| Alvor · 0324e8 | Active | €2,550,000 | €4,653 | 45.2% | 82 | 71 |
| rua Aristides de Sousa Mendes | Active | €899,000 | €5,800 | 31.7% | 90 | 69 |
| Alvor · 09004e | Active | €1,850,000 | €3,058 | 64.0% | 80 | 71 |
| Median comp | €1,374,500 | €3,980 | 53.1% | 83 | 71 |
Short-term vacation rental The current listing price for this property significantly exceeds its fair value by 166.9%, making it less appealing in the vacation rental market where seasonal fluctuations impact profitability. With a gross yield of only 1.1%, the investment does not align with the expected return for a vacation rental in the Algarve. Long-term rental At a listing price of €4,000,000, the property is overpriced compared to its fair value, leading to concerns regarding its potential long-term rental viability. The low gross yield of 1.1% suggests that investors may not receive adequate returns relative to the costs associated with maintaining such an expensive asset. Buy-and-hold Investing in this property as a buy-and-hold strategy is less favorable given its significant price gap of 166.9% from fair value, which diminishes potential capital appreciation. The overall yield of just 1.1% also indicates that this asset may not provide sufficient income to justify its high acquisition cost in the long run.
Economic Sensitivity Risk The property has a moderate economic stability score of 65/100, indicating potential vulnerabilities to economic downturns that could affect cash flow.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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