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.
4-bedroom, 4-bathroom house of 225 m², energy rating A+. Located on rua Professor Manuel João da Silva, 11, Cercal parish, Santiago do Cacém municipality, Setúbal district. Noteworthy Features: The property includes a spacious garage for six vehicles with automatic gates and an annex that has its own full bathroom, enhancing functionality and convenience.
The valuation. The asking price of €430,000 is significantly below fair value at €1,670,956, creating a difference of €1,240,956 (74.3%). This indicates the property is subvalued in the current market. Buy-to-flip angle. This property can be renovated and resold, capitalizing on the difference between the asking price and fair market value to create equity. A buy-and-flip strategy may yield high returns given the rural Algarve's evolving market. Buy-to-let angle. With an estimated gross yield of 5.7% (~€2,042/month), the rental strategy can focus on long-term leases or short-term vacation rentals, taking advantage of the area's limited competition in rural accommodation.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua Professor Manuel João da Silva, 11 | Subject | €430,000 | €1,911 | — | — | 49 |
| Cercal · 375039 | Active | €430,000 | €1,552 | 18.8% | 72 | 46 |
| rua do Barranco S / N | Active | €375,000 | €2,315 | 21.1% | 65 | 39 |
| Cercal · a8062e | Active | €375,000 | €7,353 | 284.7% | 78 | 44 |
| Cercal · 3a7225 | Active | €1,380,000 | €7,582 | 296.8% | 73 | 50 |
| Median comp | €402,500 | €4,834 | 152.9% | 73 | 45 |
Long-term rental The property in Cercal presents a notable opportunity for long-term rental investments, given its significant gap of 74.3% from the fair value of €1,670,956. With a gross yield of 5.7%, it promises stable income over time despite the current condition rating of 0/100. Short-term vacation rental Investing in the short-term vacation rental market could capitalize on the property’s fair value disparity while benefiting from the rural Algarve's appeal, albeit its less touristic nature. The substantial fair value presents a compelling case for rental pricing effectiveness, assuming improvement in the property's condition. Buy-and-hold A buy-and-hold strategy is advisable due to the property's vast gap from fair value, allowing for significant long-term appreciation in a region that may become more attractive as infrastructure and amenities develop. The enduring demand for rural living coupled with its current market undervaluation enhances its appeal as a solid investment for future returns.
Increased vacancy risk With an economic stability score of 35/100 and tenant stability score of 55/100, the property faces a heightened risk of increased vacancies, indicating potential challenges in maintaining consistent rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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