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, 4-bathroom house of 272 m², built in 2025. Located Montenegro parish, Faro municipality, Faro district. Noteworthy Features: This villa boasts a landscaped garden enhancing its serene ambiance, and a contemporary design that incorporates energy-efficient materials, promoting sustainability without sacrificing luxury.
The valuation. The asking price of €1,875,000 sits significantly above the fair value of €519,705, suggesting that the property is overpriced by €1,355,295 (72.3%). This discrepancy indicates potential challenges for prospective buyers.
Fair value modelled at €519,705 from the area baseline, adjusted for condition and location. Asking €1,875,000 sits €1,355,295 (72.3%) above — overpriced versus fair value.
Asking €1,875,000 versus the Montenegro, Faro, Faro area baseline of €969,136 (€3,563/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 85/100 (Condition 78 · Materials 90 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 60/100 (Housing Market 65 · Amenities 60 · Economic 55 · Tenant Quality 60). Strong amenities and housing-market momentum support a premium to baseline.
Montenegro, Faro, Faro
Area baseline €969,136 + condition +€34,000 + location +€18,681 = modelled fair value of €519,705 (€1,911/m²), a €1,355,295 (72.3%) gap versus the €1,875,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| Montenegro · 1e66bd | Subject | €1,875,000 | €6,893 | — | 78 | 60 |
| Montenegro · 0016d4 | Active | €945,000 | €4,565 | 33.8% | 80 | 63 |
| rua Veríssimo de Almeida | Active | €550,000 | €3,793 | 45.0% | 75 | 71 |
| Montenegro · 956ae3 | Active | €675,000 | €4,688 | 32.0% | 68 | 63 |
| Faro (Sé e São Pedro) · f3632c | Active | €920,000 | €3,098 | 55.1% | 79 | 60 |
| Median comp | €797,500 | €4,179 | 39.4% | 77 | 63 |
Short-term vacation rental The property is overpriced at €1,875,000 compared to the fair value of €519,705, creating a significant gap for potential short-term rental investors. With a gross yield of 0%, the investment does not align with the typical return expectations in the thriving tourist market of the Algarve. Long-term rental At €1,875,000, the house is priced 72.3% above its fair value of €519,705, making it a challenging proposition for long-term rental strategies. Given the property's 0% yield and the seasonal employment dynamics in the area, it may not provide stable cash flow for landlords. Buy-and-hold The asking price of €1,875,000 is significantly inflated compared to the fair value of €519,705, marking it as overpriced and unlikely to yield favorable returns over time. Additionally, the low gross yield and average neighborhood conditions suggest that long-term value appreciation may be limited, making this a suboptimal buy-and-hold opportunity.
Economic Vulnerability With an economic stability score of 55/100, the property faces significant risk due to potential fluctuations in the local economy that could affect tenant demand and rental income.
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