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, 1-bathroom apartment of 77 m², energy rating C. Located on avenida Manuel G. Rosa Mendes, Vila Nova de Cacela parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: The property boasts a versatile attic space suitable for multiple uses, alongside a large terrace ideal for outdoor living and entertainment.
The valuation. The asking price of €290,000 is significantly above fair value, being €162,200 (55.9%) higher than the assessed fair market value of €127,800. This property is overpriced.
Fair value modelled at €127,800 from the area baseline, adjusted for condition and location. Asking €290,000 sits €162,200 (55.9%) above — overpriced versus fair value.
Asking €290,000 versus the avenida Manuel G. Rosa Mendes area baseline of €132,209 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 67/100 (Condition 65 · Materials 70 · Room dimensions 66). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 61/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 55). Strong amenities and housing-market momentum support a premium to baseline.
avenida Manuel G. Rosa Mendes
Area baseline €132,209 + condition -€10,227 + location +€5,817 = modelled fair value of €127,800 (€1,660/m²), a €162,200 (55.9%) gap versus the €290,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| avenida Manuel G. Rosa Mendes | Subject | €290,000 | €3,766 | — | 65 | 61 |
| Vila Nova de Cacela · bf28af | Active | €300,000 | €4,286 | 13.8% | 73 | 55 |
| rua Duque de Terceira, 35 | Active | €330,000 | €3,143 | 16.6% | — | 60 |
| Vila Nova de Cacela · ba574c | Active | €199,900 | €4,998 | 32.7% | 65 | 63 |
| urbanização Orlamar, 3 | Active | €355,000 | €4,733 | 25.7% | 58 | 56 |
| Median comp | €315,000 | €4,510 | 19.7% | 65 | 58 |
Short-term vacation rental The property is overpriced at €290,000, which exceeds the fair value of €127,800 by 55.9%, limiting potential returns for vacation rental investors. With a gross yield of only 2.8%, the high acquisition cost may deter profitability in a market heavily reliant on tourism. Long-term rental Investing in this apartment as a long-term rental option appears less appealing given its significant overvaluation, making it difficult to achieve a favorable return on investment. The property's gross yield of 2.8% indicates limited income potential compared to its price, which could pose risks for landlords in maintaining tenant quality over time. Buy-and-hold The buy-and-hold strategy may not yield desirable results with this asset, as it is priced above fair value, leading to a substantial gap of 55.9%. The combination of mediocre condition and neighborhood ratings further suggests that retaining value in the long term could be challenging, especially in an economy profoundly affected by tourism. Not ideal for: Student housing, Luxury market
Economic and Tenant Instability The property is at risk due to both the economic and tenant stability scores being low at 55/100, indicating potential difficulties in attracting and retaining reliable tenants.
