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, 3-bathroom house of 200 m², energy rating B. Located Monte Gordo parish, Vila Real de Santo António municipality, Faro district. Noteworthy Features: This property includes a master suite with a 12 m² closet and a private terrace, and additional large terraces on the second floor enhance outdoor living opportunities.
The valuation. The asking price of €675,000 sits €292,624 or 43.4% above the fair value of €382,376, indicating the property is overpriced. This significant difference raises concerns about potential investment returns. Buy-to-flip angle. In a buy-to-flip strategy, investors would need to renovate and enhance the property to increase its market appeal substantially prior to resale, capitalizing on the Algarve’s tourist-driven market. Buy-to-let angle. The rental income strategy offers a gross yield of 2.7%, with an estimated monthly income of €1,519. This might prove modest in a competitive rental market driven by both long-term and short-term rental demand across the region.
Fair value modelled at €382,376 from the area baseline, adjusted for condition and location. Asking €675,000 sits €292,624 (43.4%) above — overpriced versus fair value.
Asking €675,000 versus the Monte Gordo, Vila Real de Santo António, Faro area baseline of €805,000 (€4,025/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 80/100 (Condition 75 · Materials 82 · Room dimensions 80). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 67/100 (Housing Market 70 · Amenities 65 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Monte Gordo, Vila Real de Santo António, Faro
Area baseline €805,000 + condition +€15,625 + location +€23,351 = modelled fair value of €382,376 (€1,912/m²), a €292,624 (43.4%) gap versus the €675,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Monte Gordo · 023bd9 | Subject | €675,000 | €3,375 | — | 75 | 67 |
| rua Primeiro de Maio, 23 | Active | €680,000 | €2,944 | 12.8% | 80 | 53 |
| urbanização Praia Verde | Active | €595,000 | €3,967 | 17.5% | — | 63 |
| Vila Real de Santo António · 9373a0 | Active | €499,000 | €2,483 | 26.4% | 68 | 53 |
| rua Almirante Cândido dos Reis | Active | €595,000 | €8,264 | 144.9% | 78 | 52 |
| Median comp | €595,000 | €3,456 | 2.4% | 78 | 53 |
Short-term vacation rental This property is overpriced by 43.4% compared to its fair value of €382,376, leading to an unattractive gross yield of only 2.7%. Given the seasonality of the Algarve's tourism-driven economy, the current price does not justify the potential return on investment. Long-term rental The gross yield of 2.7% suggests that this property, priced at €675,000, does not align with market expectations for long-term rental returns. With a fair value of €382,376, the property is significantly overpriced, limiting its appeal to long-term tenants seeking value. Buy-and-hold Investing in this property as a buy-and-hold strategy appears unwise, as it is priced 43.4% above its fair value of €382,376. The combination of its overpriced status and modest yield of 2.7% does not offer the strong capital appreciation potential typically desired in a buy-and-hold investment.
Economic downturn risk With an economic stability score of 55/100, there is a significant risk of economic downturns affecting rental income stability.
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