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 penthouse of 122 m², energy rating E. Located Portimão parish, Portimão municipality, Faro district. Unique Feature: The penthouse includes extensive wrap-around balconies with designated areas for a jacuzzi and barbecue, enhancing the outdoor living experience with stunning ocean views.
The valuation. The asking price of €795,000 is significantly above the fair value of €418,441, representing a 90.0% markup. This indicates the property is overpriced in the current market context.
Fair value modelled at €418,441 from 6 comparable sales in the area. Asking €795,000 sits €376,559 (90.0%) above — overpriced versus fair value.
Asking €795,000 versus the Portimão, Portimão, Faro area baseline of €314,149 (€2,575/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 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 €314,149, adjusted for condition and micro-location, gives a modelled fair value of €418,441 (€3,430/m²), a €376,559 (90.0%) gap versus the €795,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Portimão · 53ce92 | Subject | €795,000 | €6,516 | — | 80 | 74 |
| urbanização Clube do Vau, 2 | Active | €483,000 | €3,308 | 49.2% | 75 | 75 |
| rua Frei Manuel Sepúlcro | Active | €295,000 | €3,172 | 51.3% | 78 | 72 |
| rua Frei Manuel Sepúlcro | Active | €275,000 | €2,957 | 54.6% | 73 | 62 |
| urbanização Clube do Vau, 2 | Active | €483,000 | €3,551 | 45.5% | 75 | 76 |
| Median comp | €389,000 | €3,240 | 50.3% | 75 | 74 |
Short-term vacation rental This property is overpriced at €795,000, significantly exceeding its fair value of €418,441, resulting in a gap of 90%. With a low gross yield of 1.9%, the financial viability for vacation rentals in the region appears limited despite its desirable location in a tourist-heavy area. Long-term rental The penthouse's pricing at €795,000 indicates overvaluation, as it is well above the fair value of €418,441, creating a substantial 90% gap. Coupled with a modest gross yield of 1.9%, it makes the property an impractical choice for long-term rental investments in a mixed tenant population. Buy-and-hold Investing in this property as a buy-and-hold strategy is questionable given its €795,000 price tag, which is 90% above the fair value of €418,441. The low yield of 1.9% suggests that holding this asset for appreciation may not offer a desirable return on investment. Not ideal for The property is not suited for student housing investments due to its high price point and location dynamics. Additionally, its luxury market positioning is compromised by the overvaluation, making it challenging to attract high-end tenants. Location context The Algarve's economy is heavily tied to tourism, which affects both pricing strategies and tenant quality in the area. The mixed tenant population reflects the seasonal nature of rentals, complicating the investment attractiveness of this property.
Economic Vulnerability The economic stability score of 65 indicates a moderate risk of downturns that could affect property values and tenant reliability. Tenant Reliability Concern With a tenant stability score of 70, there's a potential inconsistency in tenant retention, which could lead to vacancies affecting cash flow.
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