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, 2-bathroom villa of 168 m², built in 1984, energy rating C. Located Mexilhoeira Grande parish, Portimão municipality, Faro district. Noteworthy Features: This villa includes a guest cottage for additional accommodation, a security alarm system, and expansive outdoor spaces perfect for gatherings and enjoying the Algarve sun.
The valuation. The asking price of €895,000 is significantly above fair value, which is calculated at €330,689, resulting in an overvaluation of €564,311 (63.1%). This property is priced excessively considering current market conditions.
Fair value modelled at €330,689 from the area baseline, adjusted for condition and location. Asking €895,000 sits €564,311 (63.1%) above — overpriced versus fair value.
Asking €895,000 versus the Mexilhoeira Grande, Portimão, Faro area baseline of €460,488 (€2,741/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 77 · Materials 83 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 75/100 (Housing Market 80 · Amenities 80 · Economic 65 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Mexilhoeira Grande, Portimão, Faro
Area baseline €460,488 + condition +€13,387 + location +€28,846 = modelled fair value of €330,689 (€1,968/m²), a €564,311 (63.1%) gap versus the €895,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Mexilhoeira Grande · 38a085 | Subject | €895,000 | €5,327 | — | 77 | 75 |
| Alvor · 4a8031 | Active | €550,000 | €3,333 | 37.4% | 74 | 73 |
| Alvor · 0238f1 | Active | €615,000 | €3,618 | 32.1% | 70 | 63 |
| Mexilhoeira Grande · 90d8e6 | Active | €2,750,000 | €6,410 | 20.3% | 85 | 67 |
| Alvor · 893460 | Active | €1,500,000 | €7,009 | 31.6% | 80 | 73 |
| Median comp | €1,057,500 | €5,014 | 5.9% | 77 | 70 |
Short-term vacation rental The property’s listing price of €895,000 significantly exceeds its fair value of €330,689, making it overpriced for the lucrative short-term rental market. With a gross yield of only 3.4%, the investment potential diminishes in a market heavily influenced by tourism. Long-term rental The overpriced nature of this villa at €895,000 compared to the fair value of €330,689 suggests limited appeal for long-term rental investments. A gross yield of 3.4% underscores the challenges in achieving desirable returns in a competitive rental landscape. Buy-and-hold Investing in this property as a buy-and-hold strategy appears challenging given its significant overvaluation at €895,000, well above the fair value of €330,689. The property’s yield of 3.4% does not provide adequate compensation for the inflated acquisition cost, limiting long-term capital appreciation potential.
Economic Fluctuation Risk The economic stability score of 65/100 indicates potential vulnerability to economic downturns, which could affect rental income and property value.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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