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 house of 94 m², built in 1995. Located Mexilhoeira Grande parish, Portimão municipality, Faro district. This property features a sunroom that seamlessly connects to a barbecue area, enhancing outdoor living in the sunny Algarve climate.
The valuation. The asking price of €380,000 is significantly above the fair value of €150,987, with a difference of €229,013, equating to an overpricing of 60.3%. This property does not represent a good investment at its current listing. Buy-to-flip angle. A buy-to-flip strategy could be challenging given the high acquisition cost. Significant renovations are needed to appeal to buyers in a competitive market. Buy-to-let angle. Potential monthly rental income of approximately €1,077 yields a gross rate of 3.4%. While the location attracts tourists, the asking price does not justify investment for long-term holding.
Fair value modelled at €150,987 from the area baseline, adjusted for condition and location. Asking €380,000 sits €229,013 (60.3%) above — overpriced versus fair value.
Asking €380,000 versus the Mexilhoeira Grande, Portimão, Faro area baseline of €281,060 (€2,990/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 60/100 (Condition 58 · Materials 62 · Room dimensions 65). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 68/100 (Housing Market 75 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Mexilhoeira Grande, Portimão, Faro
Area baseline €281,060 + condition -€22,031 + location +€11,621 = modelled fair value of €150,987 (€1,606/m²), a €229,013 (60.3%) gap versus the €380,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Mexilhoeira Grande · 25f6e2 | Subject | €380,000 | €4,043 | — | 58 | 68 |
| rua Francisco Bívar | Active | €179,000 | €2,983 | 26.2% | 54 | 74 |
| estrada de Montes de Alvor S / N | Active | €420,000 | €3,621 | 10.4% | — | 74 |
| ladeira de Nora | Active | €695,000 | €6,619 | 63.7% | 65 | 72 |
| Mexilhoeira Grande · 956c8c | Active | €549,000 | €4,323 | 6.9% | 74 | 70 |
| Median comp | €484,500 | €3,972 | 1.7% | 65 | 73 |
Short-term vacation rental Despite being in a popular tourist area in the Algarve, the property is overpriced at €380,000 compared to a fair value of €150,987, indicating a significant gap of 60.3%. The gross yield of 3.4% fails to attract investment due to this excessive valuation, limiting returns for short-term rental opportunities. Buy-and-hold The high listing price of €380,000 compared to the fair value of €150,987 suggests that this 2-bed house lacks potential for appreciation through a buy-and-hold strategy. With a yield of only 3.4%, investors may find it challenging to justify long-term ownership given the property’s inflated price. Family rental Positioned in a seasonal tourism market, the property at €380,000 is undeniably overpriced with a fair value at €150,987, creating a challenging rental proposition for families. The current gross yield of 3.4% is not sufficient to warrant the high investment required, making family rentals a less attractive option in this context.
Potential Tenant Turnover Risk The economic stability score of 55/100 indicates a moderate vulnerability to market fluctuations, while the tenant stability score of 60/100 suggests that there may be some volatility in tenant retention, increasing the risk of turnover.
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