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.
4-bedroom, 6-bathroom house of 306 m², built in 2018, energy rating A. Located on urbanização Monte Canelas, Mexilhoeira Grande parish, Portimão municipality, Faro district. Noteworthy Features: The property includes a garage with both storage and dedicated office space, as well as terraces accessible from all first-floor bedrooms, enhancing its functional appeal.
The valuation. The asking price of €1,580,000 significantly exceeds the fair value of €603,005, presenting a stark difference of €976,995 or 61.8%. Verdict: overpriced. Buy-to-flip angle. A resale strategy could be challenging given the high asking price and market assessments, focusing on modest renovations to attract luxury buyers. Buy-to-let angle. With a gross yield of 1.8% (~€2,370/month), the rental income potential is limited, making a buy-and-hold strategy less attractive in this market.
Fair value modelled at €603,005 from the area baseline, adjusted for condition and location. Asking €1,580,000 sits €976,995 (61.8%) above — overpriced versus fair value.
Asking €1,580,000 versus the urbanização Monte Canelas area baseline of €525,402 (€1,717/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 82/100 (Condition 80 · Materials 85 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 75 · Economic 60 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Monte Canelas
Area baseline €525,402 + condition +€33,469 + location +€44,134 = modelled fair value of €603,005 (€1,971/m²), a €976,995 (61.8%) gap versus the €1,580,000 asking price.
Short-term vacation rental The property is priced at €1,580,000, significantly exceeding its fair value of €603,005, indicating a gap of 61.8%. With a low gross yield of 1.8%, this investment is unlikely to generate sufficient short-term rental income compared to the initial outlay. Luxury market While the house is sizeable at 306m² and located in the desirable Algarve region, the asking price of €1,580,000 suggests the property is overpriced relative to its fair market valuation of €603,005. This significant price markup of 61.8% suggests it may struggle to attract affluent buyers looking for a true luxury investment. Buy-and-hold At a listing price of €1,580,000, the property poses a high entry cost against its fair value of €603,005, equating to a 61.8% overpricing. The relatively low condition score of 82/100 further complicates long-term value retention, making this strategy less appealing for investors seeking sustainable appreciation. Not ideal for: Student housing, Industrial investment, Agricultural development The property’s pricing and valuation disparities indicate that these strategies are not suitable given the local economic focus on tourism. Additionally, the neighborhood does not support the demand necessary for student housing or industrial and agricultural opportunities.
Inconsistent Economic Conditions There is a risk associated with the property's economic stability score of 60/100, indicating potential for fluctuating demand and rental income issues due to economic uncertainties.
