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.
3-bedroom, 2-bathroom house of 120 m², energy rating D. Located Mexilhoeira Grande parish, Portimão municipality, Faro district. This property boasts a spacious top-floor balcony perfect for entertaining, with scenic sea views and a designated dining area, enhancing outdoor living and leisure.
The valuation. The asking price of €369,000 is significantly above the fair value of €230,097, making it overpriced by €138,903 (37.6%). This discrepancy suggests a limited upside for potential investors at the current price point.
Fair value modelled at €230,097 from the area baseline, adjusted for condition and location. Asking €369,000 sits €138,903 (37.6%) above — overpriced versus fair value.
Asking €369,000 versus the Mexilhoeira Grande, Portimão, Faro area baseline of €328,920 (€2,741/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 79/100 (Condition 75 · Materials 82 · Room dimensions 78). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 71/100 (Housing Market 80 · Amenities 70 · Economic 65 · Tenant Quality 70). Strong amenities and housing-market momentum support a premium to baseline.
Mexilhoeira Grande, Portimão, Faro
Area baseline €328,920 + condition +€6,750 + location +€17,307 = modelled fair value of €230,097 (€1,917/m²), a €138,903 (37.6%) gap versus the €369,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Mexilhoeira Grande · 9388e2 | Subject | €369,000 | €3,075 | — | 75 | 71 |
| Alvor · 4d45b2 | Active | €1,099,000 | €3,281 | 6.7% | 72 | 73 |
| Alvor · 4d4200 | Active | €395,000 | €3,762 | 22.3% | 70 | 72 |
| rua Serpa Pinto | Active | €695,000 | €5,940 | 93.2% | 60 | 80 |
| ladeira de Nora | Active | €695,000 | €6,619 | 115.3% | 65 | 72 |
| Median comp | €695,000 | €4,851 | 57.8% | 68 | 73 |
Short-term vacation rental The property at Mexilhoeira Grande is not an ideal option for short-term vacation rentals, as it is priced 37.6% above the fair value, hindering potential profitability. The current gross yield of 5.9% does not compensate for the elevated purchase price, especially in a seasonal economy that affects occupancy rates. Long-term rental While the property offers a decent gross yield of 5.9% and is situated in a safe neighborhood, the overwhelming 37.6% premium over fair value suggests that long-term rental returns may not meet investor expectations. With the economic factors of the area reflecting employment instability, this investment carries additional risks despite its location in a tourist-favored region. Buy-and-hold Investing in this property as a buy-and-hold strategy appears less favorable due to its pricing being 37.6% higher than its fair value, leading to diminished growth potential. Furthermore, given the property's moderate condition rating of 79/100 and the varying demand in the Algarve, long-term capital appreciation may be limited by its current overvaluation.
Economic Vulnerability With an economic stability score of 65/100, the property may face risks during economic downturns that could impact tenant retention and rental income.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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