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, 4-bathroom villa of 207 m², built in 2022. Located Montenegro parish, Faro municipality, Faro district. The property features a spacious basement with versatile options including a sauna, gym, and home theater, while its panoramic views enhance the luxurious lifestyle.
The valuation. The asking price of €945,000 is significantly above the fair value of €397,512, resulting in an overpriced property at €547,488, or 57.9% above fair market expectations.
Fair value modelled at €397,512 from the area baseline, adjusted for condition and location. Asking €945,000 sits €547,488 (57.9%) above — overpriced versus fair value.
Asking €945,000 versus the Montenegro, Faro, Faro area baseline of €737,541 (€3,563/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 81). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 63/100 (Housing Market 70 · Amenities 65 · Economic 60 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Montenegro, Faro, Faro
Area baseline €737,541 + condition +€23,611 + location +€18,482 = modelled fair value of €397,512 (€1,920/m²), a €547,488 (57.9%) gap versus the €945,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 0016d4 | Subject | €945,000 | €4,565 | — | 80 | 63 |
| Montenegro · 1e66bd | Active | €1,875,000 | €6,893 | 51.0% | 78 | 60 |
| rua Veríssimo de Almeida | Active | €550,000 | €3,793 | 16.9% | 75 | 71 |
| Montenegro · 956ae3 | Active | €675,000 | €4,688 | 2.7% | 68 | 63 |
| rua Doutor José Domingos Garcia Domingues | Active | €375,000 | €2,641 | 42.2% | 70 | 64 |
| Median comp | €612,500 | €4,241 | 7.1% | 73 | 64 |
Short-term vacation rental The property’s high price tag creates a substantial gap of 57.9% from its fair value, making it an unlikely candidate for a profitable short-term vacation rental strategy. With a gross yield of only 2.9%, the potential returns may be insufficient to justify the investment. Buy-and-hold Despite the appealing location in the Algarve, the villa is overpriced, significantly outweighing its fair value by €547,488. The 63/100 neighborhood rating and low yield of 2.9% suggest that long-term appreciation prospects are limited, potentially diminishing overall investment returns. Long-term rental Given the property's valuation gap and resulting overpricing, it is not conducive to a successful long-term rental strategy. The sufficiently low yield of 2.9% further indicates that it might struggle to generate attractive cash flow in the current real estate landscape.
Economic Risk The property has an economic stability score of 60/100, indicating a potentially unstable market that could affect future property value and rental income. Tenant Risk With a tenant stability score of 60/100, there is a risk of tenant turnover and vacancy, impacting consistent cash flow.
