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, 2-bathroom house of 110 m², built in 1963, energy rating D. Located Mexilhoeira Grande parish, Portimão municipality, Faro district. Noteworthy Features: This property includes a versatile second-floor space that can easily be adapted into an office, leisure area, or additional storage. Condition Notes: While some areas show moderate wear, the kitchen and bathrooms are well-maintained, offering a solid foundation for updates.
The valuation. The asking price of €320,000 is positioned above the fair value of €312,717 by €7,283 (2.3%). This property is fairly valued, reflecting a balance in the current market conditions. Buy-to-flip angle. A buy-to-flip strategy could involve minor renovations to capitalize on the property’s decent condition and modern finishes, potentially increasing its resale value. This approach could attract buyers looking for ready-to-move-in homes. Buy-to-let angle. Given the area's strong tourism appeal, implementing a short-term rental strategy could maximize occupancy rates. However, the estimated gross yield is currently 0%, indicating the need for further income generation strategies.
Fair value modelled at €312,717 from 6 comparable sales in the area. Asking €320,000 sits €7,283 (2.3%) above — overpriced versus fair value.
Asking €320,000 versus the Mexilhoeira Grande, Portimão, Faro area baseline of €258,327 (€2,348/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 69/100 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 €258,327, adjusted for condition and micro-location, gives a modelled fair value of €312,717 (€2,843/m²), a €7,283 (2.3%) gap versus the €320,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Mexilhoeira Grande · ec1ac4 | Subject | €320,000 | €2,909 | — | 68 | 80 |
| Mexilhoeira Grande · 5ecfe7 | Active | €790,000 | €2,194 | 24.6% | 75 | 76 |
| rua da Amendoeira | Active | €790,000 | €2,194 | 24.6% | 75 | 70 |
| Mexilhoeira Grande · 9388e2 | Active | €369,000 | €3,075 | 5.7% | 75 | 71 |
| Mexilhoeira Grande · 03249b | Active | €542,000 | €3,170 | 9.0% | 60 | 75 |
| Median comp | €666,000 | €2,635 | 9.4% | 75 | 73 |
Short-term vacation rental The property is positioned in a desirable tourism hotspot in the Algarve, but with a fair value gap of only 2.3%, its current listing price does not offer the ideal opportunity for short-term rentals. The 0% gross yield indicates that this strategy may not generate immediate cash flow, making it less attractive in the competitive vacation rental market. Long-term rental The property's fair value suggests that its pricing aligns closely with market expectations, indicating a challenging entry point for long-term rental investment. With a decent neighborhood score of 80/100, while it remains a viable option, the lack of yield may deter landlords seeking positive returns. Buy-and-hold Given the fair value assessment, purchasing this property for long-term appreciation may limit the investor’s equity growth potential compared to other opportunities in the Algarve. The neighborhood’s strong tourism appeal may support future demand, yet the lack of rental yield raises concerns about cash flow during the hold period.
Economic Vulnerability With an Economic Stability score of 75/100, there may be potential downturns that could affect tenant demand and rental income stability.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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