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, 3-bathroom townhouse of 127 m², built in 2018, energy rating C. Located Mexilhoeira Grande parish, Portimão municipality, Faro district. The townhouse features a beautifully upgraded kitchen with Bosch appliances and a spacious terrace ideal for entertaining, along with direct access to the resort’s communal swimming pool.
The valuation. The asking price of €549,000 is significantly higher than the fair value of €242,052, representing an excessive premium of €306,948 (55.9%). This property is considered overpriced based on market comparisons.
Fair value modelled at €242,052 from the area baseline, adjusted for condition and location. Asking €549,000 sits €306,948 (55.9%) above — overpriced versus fair value.
Asking €549,000 versus the Mexilhoeira Grande, Portimão, Faro area baseline of €379,730 (€2,990/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 78/100 (Condition 74 · Materials 80 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 70/100 (Housing Market 75 · Amenities 70 · Economic 60 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
Mexilhoeira Grande, Portimão, Faro
Area baseline €379,730 + condition +€6,548 + location +€17,445 = modelled fair value of €242,052 (€1,906/m²), a €306,948 (55.9%) gap versus the €549,000 asking price.
Short-term vacation rental The property is overpriced at €549,000, significantly above its fair value of €242,052, indicating an unrealistic expectation for returns in the short-term vacation rental market. With a gross yield of only 2.9%, the potential income does not justify the premium price tag, making this rental strategy less feasible. Long-term rental Given the current listing price, the townhouse is overpriced, with a fair value gap of 55.9%, which undermines its attractiveness for long-term rental investors. The yield of 2.9% is insufficient to cover the property’s costs while remaining competitive in a neighborhood rated at 70/100. Buy-and-hold As an investment for the buy-and-hold strategy, this townhouse appears overpriced, rendering it less appealing given its fair value of €242,052 compared to its asking price of €549,000. The anticipated market appreciation in a typical mid-level tourist area of the Algarve does not align with the high entry cost, resulting in limited upside potential for long-term gains.
Economic Vulnerability The economic stability score of 60/100 indicates a moderate risk to revenue due to potential economic fluctuations that could affect tenant retention and demand.
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