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.
3-bedroom, 3-bathroom house of 536 m², energy rating E. Located on rua de Vale Formoso, Paranhos parish, Porto municipality, Porto district. Noteworthy Features: The attic boasts high ceilings, presenting a unique opportunity for development into a creative studio or wellness area, enhancing the property's overall potential. Project Approval: An approved architectural project ensures a seamless transformation while respecting the home's original charm.
The valuation. The asking price of €390,000 is significantly below the fair value of €1,000,789, indicating an undervalued opportunity. With a difference of €610,789 (156.6%), this property stands out as a compelling investment prospect.
Fair value modelled at €1,000,789 from the area baseline, adjusted for condition and location. Asking €390,000 sits €610,789 (156.6%) below — the upside to fair value.
Asking €390,000 versus the rua de Vale Formoso area baseline of €1,905,480 (€3,555/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 16/100 (Condition 10 · Materials 20 · Room dimensions 20). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 84/100 (Housing Market 85 · Amenities 85 · Economic 80 · Tenant Quality 85). Strong amenities and housing-market momentum support a premium to baseline.
rua de Vale Formoso
Area baseline €1,905,480 + condition -€498,313 + location +€179,470 = modelled fair value of €1,000,789 (€1,867/m²), a €610,789 (156.6%) gap versus the €390,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua de Vale Formoso | Subject | €390,000 | €728 | — | — | 84 |
| caminho da Bela | Active | €195,000 | €1,625 | 123.3% | 20 | 74 |
| rua São Roque da Lameira | Active | €265,000 | €1,767 | 142.8% | 25 | 73 |
| rua de Justino Teixeira, 801 | Active | €320,000 | €2,667 | 266.5% | 15 | 76 |
| rua de Rodolfo de Araújo | Active | €575,000 | €1,867 | 156.6% | 22 | 69 |
| Median comp | €292,500 | €1,817 | 149.7% | 21 | 74 |
Long-term rental The property in Paranhos, Porto is currently priced at €390,000, which is significantly below its fair value of €1,000,789, indicating a potential for strong long-term returns. Given the area's high tenant quality rating of 84/100, this investment could yield steady rental income and tenant stability over time. Family rental With a spacious 536m² layout, this 3-bed house is ideal for family rentals, especially considering the abundance of amenities in the urban setting of Porto. The price of €390,000 presents an attractive opportunity for families seeking affordable housing in a stable, well-rated neighbourhood, despite the property’s condition rating of 16/100. Buy-and-hold The significant gap against fair value suggests that holding onto this property can lead to substantial appreciation over time, making it a sound buy-and-hold investment. The diverse employment opportunities in the Porto metropolitan area further enhance the prospects for long-term value growth, despite the current lack of gross yield. Not ideal for short-term vacation rental The property's low condition rating of 16/100 makes it unsuitable for conversions into short-term vacation rentals, limiting its appeal to that market segment. Additionally, the surrounding area may not cater specifically to transient tourists, further diminishing its viability. Not ideal for student housing Although Porto is known for its education options, the specific neighbourhood's quality and property condition do not align with the needs of student renters seeking more modern or convenient housing. This property is likely to struggle in attracting students compared to more suitable accommodations nearby.
Economic Dependency Risk The economic stability score of 80 suggests that a downturn in the local economy could impact property values and rental income, while the tenant stability score of 85 indicates a robust tenant base that may be vulnerable to economic shifts, potentially affecting their ability to pay rent.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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