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 75 m² on the 1st floor, energy rating F. Located Palmela parish, Palmela municipality, Setúbal district. The apartment features a spacious loft area with exposed beams, offering flexible possibilities for additional bedrooms or a leisure space, distinguishing it from typical units in the market.
The valuation. The asking price of €390,000 sits significantly above fair value, which is calculated at €251,420, resulting in an overpricing of €138,580, or 55.1% above the fair market range. Buy-to-flip angle. Given the current condition and neighborhood ratings, a buy-and-flip strategy may not yield significant profits due to the high initial investment versus expected resale value. Buy-to-let angle. With an estimated gross yield of 2.1% at €683 per month, the rental income strategy may provide steady cash flow, but profitability remains limited due to the high purchase price in a mixed neighborhood.
Fair value modelled at €251,420 from 5 comparable sales in the area. Asking €390,000 sits €138,580 (55.1%) above — overpriced versus fair value.
Asking €390,000 versus the Palmela, Palmela, Setúbal area baseline of €206,655 (€2,755/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 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 €206,655, adjusted for condition and micro-location, gives a modelled fair value of €251,420 (€3,352/m²), a €138,580 (55.1%) gap versus the €390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Palmela · 0ac6dc | Subject | €390,000 | €5,200 | — | 82 | 57 |
| Palmela · 4680c4 | Active | €390,000 | €2,786 | 46.4% | 85 | 45 |
| rua Gil Eanes | Active | €295,000 | €3,315 | 36.3% | 80 | 49 |
| Setúbal (São Julião, Nossa Senhora da Anunciada e Santa Maria da Graça) · e3aab7 | Active | €295,000 | €3,352 | 35.5% | 85 | 47 |
| rua São Joaquim, 33 | Active | €277,000 | €3,645 | 29.9% | 75 | 39 |
| Median comp | €295,000 | €3,334 | 35.9% | 83 | 46 |
Long-term rental The 2-bed apartment in Palmela is overpriced at €390,000, far exceeding the fair value of €251,420, resulting in a significant gap of 55.1%. At a gross yield of 2.1%, the current return does not justify the high price tag, making it a less attractive option for long-term rental investment. Buy-and-hold Investing in this property for a buy-and-hold strategy poses challenges given its hefty price compared to the assessed fair value, indicating it is overpriced. Moreover, with a neighbourhood score of 57/100, potential appreciation may be limited, making this investment less appealing. Value-add renovation Although a value-add renovation might improve the property condition from its current score of 79/100, the initial investment of €390,000 is grossly overpriced against its fair value of €251,420. As such, the potential returns from renovations may not compensate for the elevated entry price, thus complicating the investment case. Not ideal for This property is not suitable for short-term vacation rental or student housing due to its pricing, which doesn’t align with the profitability expected from those markets. Additionally, the limited economic data suggests a lack of demand in the luxury market, further criticizing the property's investment viability.
Economic Vulnerability The property is at risk due to a low economic stability score of 35/100, which may lead to an inconsistent rental income. Tenant Vulnerability The property has a moderate tenant stability score of 65/100, indicating potential challenges in tenant retention or reliability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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