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.
5-bedroom, 1-bathroom house of 327 m². Located Portimão parish, Portimão municipality, Faro district. Property Highlights: This property features a large terrace complete with a barbecue and oven, ideal for outdoor entertaining and family gatherings. Additional Features: The surrounding land offers potential for constructing a pool.
The valuation. The asking price of €649,500 is €120,669 (15.7%) below the fair value of €770,169, indicating the property is underpriced. Buy-to-flip angle. Utilizing a buy-to-flip strategy could yield substantial profit by renovating outdated bathrooms and modernizing finishes for a potential market resale. Buy-to-let angle. As a buy-to-let investment, the property offers an estimated gross yield of 4.5%, generating approximately €2,436 per month in rental income, appealing for short-term vacation rentals in the tourist-heavy Algarve region.
Fair value modelled at €770,169 from 6 comparable sales in the area. Asking €649,500 sits €120,669 (15.7%) below — the upside to fair value.
Asking €649,500 versus the Portimão, Portimão, Faro area baseline of €628,358 (€1,922/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 76/100 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 €628,358, adjusted for condition and micro-location, gives a modelled fair value of €770,169 (€2,355/m²), a €120,669 (15.7%) gap versus the €649,500 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Portimão · 5b87bd | Subject | €649,500 | €1,986 | — | 78 | 69 |
| Estômbar e Parchal · f5ead8 | Active | €485,000 | €2,401 | 20.9% | 68 | 76 |
| rua do Poço | Active | €679,000 | €2,310 | 16.3% | 73 | 70 |
| Alvor · 15e1ad | Active | €269,000 | €2,690 | 35.4% | 70 | 69 |
| urbanização da Hortinha, 5 | Active | €990,000 | €2,215 | 11.5% | 66 | 64 |
| Median comp | €582,000 | €2,356 | 18.6% | 69 | 70 |
Short-term vacation rental This property, located in the tourist-heavy Algarve region, presents a compelling opportunity for short-term vacation rental, given its proximity to amenities catering to seasonal demands. With a fair value exceeding the listing price by 15.7%, the potential return on investment appears robust, particularly with a gross yield of 4.5%. Buy-and-hold Owning this property as a long-term investment aligns well with the economic stability and ongoing demand for tourist accommodations in Portimão. Despite its current condition rating of 76, the property’s fair value suggests an appreciation potential, affirming its suitability for a buy-and-hold strategy. Long-term rental While the property's amenities are primarily designed for tourists, it can still accommodate long-term rentals, especially in a region marked by housing demand fluctuations. The property offers a decent yield of 4.5%, which can offset maintenance costs while positioning the investor favorably in the rental market. Not ideal for student housing, Luxury market, Value-add renovation Given the neighbourhood's focus on tourism and the property's current state, it is not positioned well for student housing or luxury markets. Additionally, the existing condition limits the potential for value-add renovations, making these strategies less viable.
Economic Vulnerability With an economic stability score of 65/100 and a tenant stability score of 60/100, there may be a heightened risk of financial instability affecting rental income and property value.
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