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, 2-bathroom house of 70 m², built in 1951. Located on rua do Doutor Samora Gil, 26, Monchique parish, Monchique municipality, Faro district. Noteworthy Feature: The property showcases prestigious oak doors handcrafted in Monchique, emphasizing its local craftsmanship and traditional architecture, beautifully complemented by modern design elements.
The valuation. The asking price of €250,000 is significantly above the fair value of €134,424, indicating that the property is overpriced by €115,576, or 46.2%. This discrepancy suggests little room for immediate value improvement. Buy-to-flip angle. A potential buy-to-flip strategy could involve enhancing the property’s appeal through strategic renovations, then reselling at a higher price point to capitalize on the tourist-heavy market. Quick turnover can be advantageous if executed effectively. Buy-to-let angle. The rental income strategy may face challenges, as the gross yield stands at 0%, indicating no immediate cash flow. However, the property could attract long-term tenants or be converted into a short-term vacation rental in the desirable location.
Fair value modelled at €134,424 from the area baseline, adjusted for condition and location. Asking €250,000 sits €115,576 (46.2%) above — overpriced versus fair value.
Asking €250,000 versus the rua do Doutor Samora Gil, 26 area baseline of €115,360 (€1,648/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 80 · Amenities 70 · Economic 50 · Tenant Quality 50). Strong amenities and housing-market momentum support a premium to baseline.
rua do Doutor Samora Gil, 26
Area baseline €115,360 + condition +€7,984 + location +€6,250 = modelled fair value of €134,424 (€1,920/m²), a €115,576 (46.2%) gap versus the €250,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| rua do Doutor Samora Gil, 26 | Subject | €250,000 | €3,571 | — | 80 | 63 |
| rua de São Sebastião | Active | €235,000 | €4,123 | 15.4% | 74 | 60 |
| Monchique · 261fa4 | Active | €440,000 | €2,933 | 17.9% | 64 | 53 |
| Monchique · 99f144 | Active | €1,795,000 | €4,825 | 35.1% | 85 | 56 |
| Monchique · 389984 | Active | €1,250,000 | €2,588 | 27.5% | 82 | 59 |
| Median comp | €845,000 | €3,528 | 1.2% | 78 | 58 |
Short-term vacation rental The property in Monchique, listed at €250,000, shows a significant gap of 46.2% from its fair value of €134,424, indicating it is overpriced. With a gross yield of 0%, the investment in a short-term vacation rental is unlikely to generate a profitable return given the market conditions. Buy-and-hold Investing in a buy-and-hold strategy for this property would not be advisable, as it is priced above fair value with a 46.2% premium. The lack of rental yield further compounds the risk of a stagnant asset in a tourist-heavy area without substantial long-term growth potential. Value-add renovation While value-add renovations could typically enhance property value, the current asking price of €250,000 means the investment is already overpriced by 46.2% compared to the fair value. Given the existing condition score of 82/100, additional renovations may not offset the initial premium paid for the property.
Economic Dependence Risk The property faces a significant risk due to both the economic stability score and tenant stability score being at 50/100, indicating a potentially volatile rental income and market conditions.
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Comparables, condition and location workings, yield and time-to-sell. Written up and emailed to you.
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