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 199 m², energy rating F. Located on rua do Monte, União das Freguesias de Querença, Tôr e Benafim parish, Loulé municipality, Faro district. This property features a captivating rooftop terrace with picturesque mountain views and an old traditional wood-fired oven, highlighting its potential for unique outdoor entertaining.
The valuation. The asking price of €290,000 is significantly below the fair value of €942,577, representing a staggering 225% disparity. This property is distinctly underpriced, presenting an exceptional opportunity for investors. Buy-to-flip angle. A buy-to-flip strategy could capitalize on the property's undervaluation by applying moderate renovations to enhance its appeal, making it attractive for resale. Aiming for a quick turnaround could yield substantial profits given the current market demand. Buy-to-let angle. With an estimated rental income of €1,837 per month, the property boasts a gross yield of 7.6%. This positioning allows for stable cash flow while benefiting from the area's tourism-driven economy and rental demand.
Fair value modelled at €942,577 from the area baseline, adjusted for condition and location. Asking €290,000 sits €652,577 (225.0%) below — the upside to fair value.
Asking €290,000 versus the rua do Monte area baseline of €954,205 (€4,795/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 42/100 (Condition 36 · Materials 42 · Room dimensions 50). Below-median condition lowers fair value versus a renovated baseline unit.
Neighbourhood score 74/100 (Housing Market 75 · Amenities 75 · Economic 70 · Tenant Quality 75). Strong amenities and housing-market momentum support a premium to baseline.
rua do Monte
Area baseline €954,205 + condition -€103,231 + location +€91,604 = modelled fair value of €942,577 (€4,737/m²), a €652,577 (225.0%) gap versus the €290,000 asking price.
Short-term vacation rental The property's location in the Algarve makes it an ideal candidate for the short-term vacation rental market, particularly given its proximity to beaches and tourist infrastructure. With a fair value gap of 225.0%, the investment could yield significant returns as vacation seasonality drives demand. Long-term rental Given the area's robust tourism-driven economy and favorable neighborhood rating of 74/100, this property presents a strong opportunity for long-term rental income. The attractive gross yield of 7.6% aligns well with investor expectations for consistent cash flow in a desirable location. Family rental The spacious layout of this 4-bed house is well-suited for family rentals, especially in an area that offers livability enhanced by amenities and a sound environment for families. Considering the demand for family-oriented housing in the Algarve, this property stands to benefit from a steady stream of potential tenants. Not ideal for student housing The property is not conducive to student housing as it is situated outside of typical university locales and lacks specific amenities that attract students. Given its residential-focused nature and family-friendly layout, it is best suited for long-term or vacation rentals instead. Not ideal for luxury market The current condition rating of 42/100 indicates this property is not suitable for the luxury market, as it does not meet the expectations associated with high-end residences. Despite its excellent location, potential luxury tenants may seek properties that offer superior condition and amenities. Not ideal for industrial uses This 4-bed house is not suitable for industrial purposes, as it does not align with the requirements of commercial operations in terms of space and zoning. Its residential nature and location in a primarily family-oriented neighborhood further limit its viability for industrial applications.
Economic Weakness Risk The economic stability score of 70/100 indicates there may be emerging vulnerabilities in the local economy that can affect property values and investment returns negatively.
