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 100 m², energy rating F. Located Melides parish, Grândola municipality, Setúbal district. Noteworthy Features: The outdoor kitchen with a wood oven and the separate storage annex enhance the property's potential for outdoor entertaining and practical usage. Valuation Verdict: The property requires maintenance; hence it is priced below market value.
The valuation. The asking price of €260,000 sits significantly below the fair value of €582,438, making this property subvalued by €322,438 (55.4%). This represents a unique opportunity in a market where prices may not reflect true potential.
Fair value modelled at €582,438 from 6 comparable sales in the area. Asking €260,000 sits €322,438 (55.4%) below — the upside to fair value.
Asking €260,000 versus the Melides, Grândola, Setúbal area baseline of €597,553 (€5,976/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 43/100 is below the parish average, reducing fair value versus a typical-condition unit.
Recent nearby listings price above the wider parish average — a hyper-local premium distinct from the parish baseline.
Base gap of €597,553, adjusted for condition and micro-location, gives a modelled fair value of €582,438 (€5,824/m²), a €322,438 (55.4%) gap versus the €260,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Melides · 15e278 | Subject | €260,000 | €2,600 | — | 45 | 39 |
| Melides · 23f3d1 | Active | €950,000 | €3,545 | 36.3% | — | 48 |
| Melides · 483a04 | Active | €1,500,000 | €15,306 | 488.7% | — | 42 |
| Melides · b7b641 | Active | €525,000 | €5,526 | 112.6% | — | 44 |
| Melides · 483bb0 | Active | €1,800,000 | €6,122 | 135.5% | — | 51 |
| Median comp | €1,225,000 | €5,824 | 124.0% | — | 46 |
Long-term rental The property offers a gross yield of 5%, which is attractive considering its fair value of €582,438, indicating a significant gap of 55.4%. This suggests strong potential for steady cash flow in the long-term rental market due to favorable pricing relative to fair market assessments. Value-add renovation With a condition rating of 43/100, there is substantial room for improvement through renovations, potentially driving the property closer to its fair value. Capital invested in value-add renovations could not only enhance the living conditions but also significantly increase property appreciation in this underpriced market. Short-term vacation rental The property is not ideal for short-term vacation rentals due to its rural Alentejo setting, which may not attract the typical tourist demographic. With a lower neighborhood rating of 39/100, the potential for consistent short-term rental income is limited. Student housing As the local region is largely rural and lacks significant educational institutions, the property does not meet the needs for student housing. Poor tenant quality in the area further diminishes the viability of this strategy. Luxury market This property is not suited for the luxury market given its current condition and neighborhood ratings, indicating an absence of high-end amenities. The significant gap from fair value suggests it is not positioned for luxury pricing, making this strategy less feasible.
High Tenant Turnover Risk The property may face increased vacancy rates due to a low tenant stability score of 40/100, indicating higher likelihood of tenants leaving and associated costs of re-letting the space.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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