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 70 m², built in 1983, energy rating C. Located on estrada de Monchique, Portimão parish, Portimão municipality, Faro district. Noteworthy features: The property includes a fully remodeled kitchen with modern appliances and double glazing throughout, enhancing both comfort and energy efficiency.
The valuation. The asking price of €268,900 is significantly above the fair value of €129,739, leading to an overvaluation of €139,161 or 51.8%. This property does not represent a viable investment at its current price. Buy-to-flip angle. The strategy for resale hinges on purchasing the property, enhancing it through value-add renovations, and targeting a quick flip for a profit in a tourism-driven market. Upgrades could attract buyers willing to pay a premium for coastal living. Buy-to-let angle. The estimated rental income of €919 per month results in a gross yield of 4.1%, offering a steady income stream through a short-term vacation rental strategy. This aligns well with the Algarve's popularity among tourists seeking accommodation.
Fair value modelled at €129,739 from the area baseline, adjusted for condition and location. Asking €268,900 sits €139,161 (51.8%) above — overpriced versus fair value.
Asking €268,900 versus the estrada de Monchique area baseline of €226,660 (€3,238/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 75/100 (Condition 71 · Materials 78 · Room dimensions 75). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 71/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
estrada de Monchique
Area baseline €226,660 + condition -€547 + location +€10,096 = modelled fair value of €129,739 (€1,853/m²), a €139,161 (51.8%) gap versus the €268,900 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| estrada de Monchique | Subject | €268,900 | €3,841 | — | 71 | 71 |
| rua Horta do Palácio | Active | €305,000 | €3,813 | 0.8% | 75 | 70 |
| Portimão · 49b7ed | Active | €310,000 | €4,493 | 17.0% | 80 | 68 |
| Portimão · f35fee | Active | €259,500 | €3,327 | 13.4% | 72 | 76 |
| Portimão · 1e638b | Active | €211,720 | €5,293 | 37.8% | 75 | 72 |
| Median comp | €282,250 | €4,153 | 8.1% | 75 | 71 |
Short-term vacation rental This property presents a gross yield of 4.1%, but with a significant gap of 51.8% from its fair value, it is overpriced for a market that heavily relies on tourism. Investors should be wary, as high listing prices may deter potential short-term renters who expect competitive rates. Buy-and-hold Even though the property is situated in the attractive Algarve region, its current listing price indicates it's overpriced compared to its fair value of €129,739. Holding onto an overpriced asset may result in substantial opportunity costs versus other investments with more favorable valuations. Value-add renovation The apartment’s condition rating of 75/100 suggests potential for upgrades, but the significant 51.8% gap against fair value indicates it's currently overpriced and may not yield a good return on renovation investment. Without acquiring the property at a more reasonable price, future renovations could further solidify poor financial performance in an already competitive market.
Economic Vulnerability The economic stability score of 60/100 suggests potential fluctuations in the local economy that could impact property value and rental income.
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